If you stop paying, the lender can reclaim the property. It may choose to sue and get a judgment against you, but it’s not required as long as the repossession is peaceful. Here’s what you need to know about California repossession laws.

What happens at a repossession court hearing?

At the hearing, a Master (a High Court Judge) will decide if an order for possession (to repossess the property) should be made. The decision will take into account the information you and the lender give. The Master has authority to give you time to address the arrears (payment overdue) or the entire mortgage debt.

How long does it take to get a repossession court order?

How long does the repossession process take? With the various steps that lenders need to follow to apply for a repossession order, the whole process can take up to 9 months. This can differ case to case, but in general, it’s quite a slow process.

Can a creditor Sue you for a repossession?

The creditor sold the car to friends or family. This is not commercially reasonable. The creditor didn’t sell the car. If the creditor decides to keep the car, then your debt is fully satisfied and you can’t be sued. The creditor made a private sale when most repossession sales in your area are handled by auction.

What happens to my car if it is repossessed?

If your car is repossessed, then the creditor will probably sell it at auction. However, if the amount of the sale is less than the balance of your loan, you can be sued for the deficiency. To defend yourself, you should try to find errors that the lender made when giving you the loan or when selling the car.

How to deal with a deficiency judgment after a car repossession?

If you have a lump sum of money, you can often reduce the total balance owed on the deficiency by paying one lump sum. (Learn about tips for negotiating with creditors .) A Chapter 7 bankruptcy wipes out most of your debts, including a deficiency judgment after a car repossession.

What happens if you are sued by a creditor?

The lawsuit will go forward with or without you appearing in court and if you’re not there to defend yourself, the judgment will very likely go against you. Once this happens, your options become extremely limited because the court has already determined that you owe the full debt and any fees.