Car repo

by Jamie
(lancaster, California, USA)

My boyfriend had his truch repo and he owe over 6,000.00 on it, this was back in 2008. Can they garnish his wages since he finally got a job??? We live in california.

Comments for Car repo

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Dec 05, 2011
Car repo

When a vehicle is repossessed, the lender typically sells or auctions off the vehicle and then applies the sales proceeds to the balance due on the loan. That balance is referred to as a deficiency. I assume that this is the $6,000 you are refer to in your question.

if your boyfriend does not pay the deficiency amount, the lender will sue the him for the money, and if it wins the lawsuit, the lender will try to collect the amount of the judgment. In order to do so therefore the lender may ask the court for permission to garnish his wages. Assuming the lender gets that permission, there is a state-established limit however on how much can be taken from each of his paychecks.

One option for stopping a garnishment is to file for bankruptcy. If your boyfriend were to file, all collection efforts against him would have to cease immediately and your boyfriend would have an opportunity to work with his bankruptcy attorney to figure out what to do about the debts that he owes. (If garnishment has already begun, filing for bankruptcy would stop it from continuing.)

Bankruptcy may or may not be a good option for your boyfriend however. Only a bankruptcy attorney can make that determination after looking at the all of the details of your boyfriend's financial situation. Your boyfriend should go here to schedule a free consultation with a bankruptcy attorney.

Jan 29, 2012
by: Jacob0821

The truck being repossessed. It's then auctioned off and after auction fee's, repossession fee's, paperwork fee's, and fee's for xxxx.
The amount left over after all the fee's will be applied to the outstanding loan balance your boyfriend owes. If there is still money owed, which most times there is--- Yes, your boyfriend
will owe that outstanding balance.
In most states they have to sue you in court and get a court judgement before they can garnish wages, take bank accounts, etc.
If he's served a summons to goto court to be sued and he did'nt respond by going to court, they would then be awarded an automatic judgement.

Anyway , with a judgement they can garnish wages, tax refunds, levy bank accounts, if he's on another persons bank account such as a parents or grand parents for emergency situations, even their bank account can be levied and funds taken for the judgenment. ( only if he's on another person's account) A lot of people don't think of this and get a call from a relative who had him on their bank account for an emergency situation.

Back to the main topic,--- after the auction proceeds are applied to his loan and IF there is still anything he owes the lender that he is sure he owes and if he wants to / decides to make payment arrangements to pay the left over balance. MAKE SURE YOU / HE GET'S ANY PAYMENT AGREEMENT / ARRANGEMENTS IN WRITING !! Collection agencies, collection lawyers LIE !
So get any arrangement in writing !
Also, mske sure any payments you agree to in such an agreement are payments you can afford !
They will push, push, push for the largest payment they can. I do stress this__ once you make an arrangement , stick to it. YOu miss one single payment and they will void any agreement to allow you / him to pay payments.

Something very important, when was this loan.
When did he go delinquent. When was the last time he made any payment?
Reason I ask is there are statue of limitations , which are different from state to state.
If his loan , repossession is over 2 years old. I suggest he find a pro-bono free or reduced rate attorney for just a consultation.
Certain old debts after certain amount of years are called time barred debt. but I assume his repossession is fairly recent, so statue of limitations--time barred don't apply to his case.

I'm not an attorney but what I've said is from personal experience.
Get online and research on google.

Jan 29, 2012
by: Jacob0812

After posting a reply to you I re-read your original question.
I see he had the re-possession in 2008.

I looked online at California Statue of Limitations on Debt.
Before I go any farther, he needs to see a lawyer immediately for a consultation.

Online when I googled statue of limitation of debt by state. I looked at California's.
It shows in California that 2 years limit on written contracts for credit--AND- it shows 4 years for a promissory note.

I think you see where I'm going with this. I'm not sure which kind of loan / paperwork you had with your lender: but since you say your repossession happened in 2008_ depending on what month and day in 2008 __ your coming up on 4 years which for sure is enough time to satisfy both the 2 and 4 year statue's.


They can still sue you but your defense is the debt is time barred by state if california statue of limitations.

You won't be able to just ignore any lawsuit summons to go to court. If served to go to court you should get some type attorney and mention statute of limitations, time barred debt . Make sure you get a consumer debt lawyer.

If you ignore a court summons, they will get an an AUTOMATIC JUDGEMENT seeing as you didn't respond to fight it with your right to assert it was a time barred account. (once the full 4 years goes by.. down to the month and day!)

THIS IS VERY IMPORTANT___ making any payments or promises to pay will start the statue of limitations back to day one ( 1 )
I'm not telling you to not pay or anything, but after this much time what's another few months. so the 4 years will be gone. Assuming the 2 year statue didn't apply to you in the first place.

Please , call your attorney bar association, lawyer referral, pro bono, etc. for a free or reduced rate lawyer.

Even paying for an attorney will be better and way cheaper if they can indeed help you with the statue of limitations time barred dismissal once the correct amount of time has passed.
Like I said above, I'm not sure which type loan / paperwork your vehicle has when you got the loan.
Whether the 2 or 4 years statue limitations applies.

Usually the first consultation for an attorney is free.

I will tell you this, if you can get by without them suing you until the statue of limitations expires and you get an attorney, every penny you pay will be worth it I bet.

You don't want the loan company suing you, getting a judgement as a judgement will be good for year and years, following you around.

Good Luck friend

Sep 02, 2015
Harley Davidson Status of limitation.
by: Anonymous

I have 2007 Harley Davidson that I just never paid since December 2006, I never been contacted by the lender, and default on 28000, never claim Bankruptcy, never paid the money, is there any status of limitation that protects me?

Reply from

In many states, there is a separate statute of limitations that applies to car loans, and it may be longer than the statute of limitations for other debts. The other problem is that the lender probably still has a lien and holds the title, right? If you want to sell it you could be stuck without a clear title. Nevertheless, it would be a good idea to talk with a consumer protection attorney to find out what your options are.

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