Repossessions
Wrongful car repossessions based on old liens
When a car is purchased on credit, a finance company or lender takes a “security interest” in the vehicle. This means the car serves as “security” for the buyer’s performance of the purchase contract, and the finance company or lender can repossess the vehicle if the buyer defaults on his or her obligations under the…
Read MoreIs filing bankruptcy an event of default which could lead to a car repossession?
If you purchased your car (not if you leased it), and California law applies, the answer now is no. Simply filing for bankruptcy or being a debtor in bankruptcy can no longer be deemed an event of default under a purchase contract or car loan. The California Legislature has added provisions to California Civil Code…
Read MoreThe Coronavirus Pandemic: Car Payments and Repossessions
The national emergency resulting from the Coronavirus (COVID-19) pandemic has made it hard for many consumers to make their monthly car payments and it seems has resulted in increased repossessions. Law Offices of Brandon A. Block has remained, and will continue to remain, open and available to all consumers during the Coronavirus pandemic (though working…
Read MoreDo Car Repossessions Violate Stay-At-Home Orders?
This post has been updated as of February 17, 2021, based on developments. It seems the answer is, “It may, but it’s unclear.” Looking just at the text of California’s stay-at-home orders, they appear to have precluded repossessions while in effect. By not specifically exempting workers in the collection or collateral recovery aspects of the…
Read MoreVoluntary Repossessions of Motor Vehicles
Consumers sometimes consider voluntary repossessions or surrenders of their vehicles when they are unable to meet their payment obligations under their car notes or loans. A voluntary surrender occurs when the consumer contacts the finance company or lender and makes arrangements to turn over the vehicle. The creditor then may send a repossession company to…
Read MoreCar Repossessions in Garages, Gated Communities or Gated Areas
A repossessor sometimes completes a repossession by following a car into a gated area or gated community (sometimes referred to as “piggybacking”), or the repossessor drives in when someone exits the gate. Both situations amount to a breach of the peace and are unlawful. California statutory law and caselaw define a breach of the peace…
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