Walk It Through: The Car In The Driveway
A car bought on credit, a default, a tow truck before dawn, and the time to redeem.
A car bought on credit falls behind, and the lender declares a default.
Two things a person in this spot might do. Picking one shows what the law says about it.
One car and one lender. What counts as a breach of the peace, the other California laws on vehicle sales contracts, and any deficiency afterward are not worked through here.
A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.
Words this turns on
Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.
- Breach of the peaceThe limit on taking collateral back without the courts. After default a secured party may take possession without judicial process only if it proceeds without breach of the peace.
- RedeemTo take back the collateral by tendering everything it secures, plus the reasonable expenses and attorney's fees the code describes.