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California repossession laws provide how a legal repossession can take place. Bankruptcy will stop the repossession of your vehicle and will stop the auction of your vehicle. You must file bankruptcy before the auction takes place though. Schedule a FREE PHONE CONSULTATION or FREE OFFICE CONSULTATION and find out if bankruptcy is right for you. 1-877-963-9543
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Ryan C. Wood, Partner
Kitty J. Lin, Partner
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California law regarding the repossession of vehicles falls under a number of areas. Below are a few important sections.
California Civil Code §§1812.2 – 1812.5
SECTION 1812.2
SECTION 1812.3
SECTION 1812.4
SECTION 1812.5
California Business and Professions Code §§7500 – 7511
SECTION – 7508.2
SECTION – 7508.3
No Prior Written Notice Required
If you have missed one or more car payments your loan company can take back the collateral securing the loan; your car. They do not need to give you any prior notice either. The company repossessing your car can repossess the vehicle at any time without breaching the peace. See California Penal Code 415.
Notice After Repossession
Once you miss a payment you are in default in performance of your auto loan. The loan company may then sue you to recover the missed payments or repossess the vehicle. If the vehicle is repossessed you must receive within 10 days if they intent to sell the vehicle. This notice must provide the amount of the missed payments and that if you pay the missed payments within 10 days you may receive the vehicle back.
How to Get The Vehicle Back
You have the absolute right to redeem, or get back the vehicle by paying the missed payments within 10 days. You may also file bankruptcy to stop the sale of the vehicle and possibly pay less for the vehicle and reduce the interest rate. You also have the absolute right to pay the missed payments, plus any expenses incurred by the loan company or auction company holding the vehicle, and get back the vehicle before the sale of the vehicle. If the repossessor or holder the of vehicle does not provide a statement with the notice of total missed payment plus expenses, the repossessor or holder must pay you $10 and is also liable for all damages suffered from not providing the statement. See California Civil Code 1812.2
The notice also must be provided to any person liable such as a co-signer. The notice must be delivered personally or by U.S. Mail addressed to you at your last known address. If the repossessor intends to sell the vehicle the notice must provide you with time and place of the sale at least 10 days before the date of the sale. See California Civil Code 1812.3
How Money From Sale is Applied
The money received from the auction or sale of the vehicle is applied to the payment of expenses to repo, hold and sell the vehicle and then applied to the balance due under the loan agreement. See California Civil Code 1812.4
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