Best Answer

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.

User Avatar

Wiki User

โˆ™ 2011-09-13 05:49:15
This answer is:
User Avatar
Study guides


26 cards

What is forfeiture

Which of these is the best description of delinquency

Which term is defined as property that is pledged as security on a loan

This is Paula's monthly budget What percent of her expenses is spent on insurance

See all cards
3 Reviews

Add your answer:

Earn +20 pts
Q: Is there a law in California that prevents creditors from auctioning a repossessed car for less than a reasonable price?
Write your answer...
Still have questions?
magnify glass
Related questions

If you cosigned a car loan for your daughter and the car got repossessed do you both have to file for bankruptcy?

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.

If your car is about to be repossessed is it too late to make your account current with the creditors?

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.

If the creditors repossessed a motorcycle and then DID NOT sell it at an auction do you still owe?

No you don't still owe; once the motorcycle has been repossessed, it is no longer your concern. Whether the creditor sells it or fails to sell it is the creditor's problem, not yours.

Which states allow creditors to garnish pension checks?


In California how many creditors can garnish a paycheck at one time?


Do creditors have the right to refuse monthly payments on a balance due on a repossessed car?

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

Can you stop original creditors from calling you?

Yes, I understand that certain states (Texas, Michigan, California) have state laws that prohibit original creditors from calling you once you have addressed them in the proper manner.

Can creditors still contact you after the discharged date of chapter 7?


Examples of creditors ledger and a creditors journal?

creditors journal

What is creditors circularization?

creditors' circulization

What do I do with a car that was voluntarily repossessed and the finance company won't come and get it?

While most creditors will allow you to have your vehicle voluntarily repossessed, some lenders will not accept them. Your best resolution in this case is to contact the finance company and determine why they will not collect the vehicle. Ensure that they are indeed accepting the voluntary repossession. You will still be required to pay the remaining balance unless you are told otherwise.

Can creditors account have debit balance?

creditors have debit balances as advances receive from creditors..........

People also asked