Walk It Through: The Car Payment That Was Late
Ten days in default, the notice of the right to cure, twenty days, and the repossession.
A car payment is missed, and ten days later a letter arrives headed with the amount now due and a last day for payment.
Two things a person in this spot might do. Picking one shows what the law says about it.
One car loan. The sale after repossession, deficiency suits, title loans, rent to own goods and bankruptcy 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 peaceWhat a creditor may not commit in taking collateral without going to court, along with entering a dwelling used as a current residence or using force.
- DeficiencyThe balance left owing after repossessed goods are sold, which a consumer owes only if the creditor disposed of the goods in good faith and in a commercially reasonable manner.
- Deficiency judgmentA judgment for whatever remains of a mortgage debt after the foreclosure sale, against a borrower personally liable for it, or against another person who guaranteed it.
- Right to cureA consumer's right, after a written notice from the creditor, to pay all unpaid sums due plus delinquency charges and continue the contract as though the default had not happened.