Walk It Through: The Car In The Driveway
A car bought on credit, a default, a tow truck before dawn, and the window to redeem.
The payments on a car bought on credit are behind, and the lender's letter says the loan is in default.
Two things a person in this spot might do. Picking one shows what the law says about it.
One car and one secured lender. Notice before a sale, whether a disposition was commercially reasonable, a deficiency or surplus afterward, and the consumer credit and motor vehicle statutes that may add requirements 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 one condition on a secured party that takes collateral back without judicial process, such as a car bought on credit. It may do that only if it proceeds without breach of the peace.
- RedeemTo get collateral back by tendering fulfillment of all obligations it secures, plus the reasonable expenses and attorney's fees the Code describes. A debtor, a secondary obligor, or another secured party or lienholder may do it.