Is there a law in California that prevents creditors from auctioning a repossessed car for less than a reasonable price?


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Wiki User
2011-09-13 05:49:15
2011-09-13 05:49:15

The Uniform Commercial Code in every state requires only the lender to sell "in a commercially reasonable manner". That's all. There is where the conflict arises on the selling price. A debtor who buys a car for $5000.00 more than it is worth is often heartbroken when s/he still owes $8000.00 after it is sold at auction to a WHOLESALER.


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Having a car or other item repossessed does not mean anyone has to file for bankruptcy. Bankruptcy is to protect you from creditors and should be sought if you owe more than your net worth and have no reasonable prospect of being able to pay what you owe.

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No, it is probably not too late. It certainly will help your credit either way. Call them immediately. Do not allow it to be repossessed if at all possible.

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READ your contract. It should deal with that issue. If you meet the conditions set forth by the contract, YES, they can refuse.

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