Walk It Through: The Tow Truck Before Dawn
A car loan in default, a repossession, the notice of sale, and the deficiency.
Payments on a car loan are behind, and a tow truck arrives before dawn while the car sits in the driveway.
Two things a person in this spot might do. Picking one shows what the law says about it.
One car loan and one repossession. Reinstatement terms, how the sale itself is conducted, any surplus, and the shutdown protection for government workers 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.
- DeficiencyWhat is still owed after a repossessed vehicle is sold or leased again, owed only if the notice was given within 60 days after repossession and itemizes the balance and any delinquency, collection or repossession costs.
- Repossession without judicial processA secured party taking the collateral after a default without going to court, which it may do only if it proceeds without breach of the peace.
- Right to redeemPaying the debt in full during the notice period to get a repossessed vehicle back. The notice of intent to sell states the right and the total amount needed to redeem as of its date.