Stop Car Repossession in California
After years of paying your auto loan on time, losing your car to repossession is the last thing you want to happen! Unfortunately, that is exactly what can occur when you fall behind on your payments in California.
The laws allow lenders to:
- Take possession of your vehicle.
- Auction it off to the highest bidder.
- Pocket the money you've already paid them.
- Make you pay the remaining loan balance.
If you’re struggling to stay current on your auto note, you can still avoid repossession if you act quickly. Call or text DebtStoppers today at 323-916-8660to schedule a free debt analysis with one of our qualified California lawyers. We’ll explain how bankruptcy laws work and how they can keep you behind the wheel.
The Repossession Laws in California
If you took out a loan to pay for your car or truck, you like signed a financing agreement that legally obligates you to make monthly payments towards the balance. According to the terms of most loans (and California laws), if you fall behind, the lender can repossess your vehicle.
You have the option to take the car back as a voluntary surrender, or the lender will send a repo agent to come and tow it away. California laws provide some protections against abuses, prohibiting repo agents from:
- Breaching the peace
- Threatening you
- Using violence
- Damaging your personal property
Once the lender takes back your vehicle, they will sell it to the highest bidder at an auction. If the sale price is less than the outstanding balance on your loan, you’ll be on the hook for the rest.
Stopping Repossession With DebtStoppers
Fortunately, California bankruptcy laws allow you to prevent repossession. As soon as your attorney files your petition in the bankruptcy court, an automatic stay that orders your creditors to stop pursuing any collection actions against you, including repossession, will protect you.
Another advantage of filing for bankruptcy is the ability to eliminate most of your consumer debts. Chapter 13 bankruptcy allows you to reduce and reorganize your debts, so you can keep your car, and even lower your auto loan payment. With Chapter 7, you can wipe out your unsecured debts. Even though the laws techinically permit a trustee to sell your belongings to repay creditors, this rarely happens. Plus, you can usually figure out a plan that allows you to keep your vehicle.
Ask Our Experienced California Attorneys For Help
If you’re at risk of losing your car or truck to repossession, call or text DebtStoppers today at 323-916-8660 to request a no-obligation bankruptcy consultation with one of our knowledgeable California lawyers. We have helped thousands of families stay on the road, and we can help you fight repossession too.
If your lender is threatening to repossess your car, don’t give up! DebtStoppers can help. Call or text us today at 323-916-8660 to protect your vehicle before it’s too late.