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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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โˆ™ 2011-09-13 05:49:15
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Q: Is there a law in California that prevents creditors from auctioning a repossessed car for less than a reasonable price?
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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.


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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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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.


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Creditors can force a person into bankruptcy, if you are not already, but generally speaking, you cannot load up all your net worth in your home, and refuse to pay everybody else. This is why creditors can force a person into bankruptcy under the right circumstances. They usually don't, but they can.


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When they send the letter, it's ten days from the time the letter was drafted. As for when they can repossess legally, that's a matter of your contract, and the laws of your state. Repossession agents and creditors stay pretty up-to-date on legal issues, and if they've repossessed your car, it's probable that they did it in a timeframe where it was legal for them to do so.


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