Can a Debt Collector Take My Car in California? (2024)

Table of Contents
Know the Difference Between Debt Collectors and Judgment Creditors Find Out If Your Personal Property Is Seizable Settle Your Debt to Keep Your Car What is SoloSuit? How to Answer a Summons for debt collection in all 50 states Guides on how to resolve debt with every debt collector Resolve your debt with your creditor Settle your medical debt Guides on arbitration Stop calls from debt collectors Federal debt collection laws can protect you Get debt relief in your state Debt collection laws in all 50 states Statute of limitations on debt state guides Check the status of your court case How to stop wage garnishment in your state Other wage garnishment resources How to settle a debt in your state How to settle with every debt collector Other debt settlement resources Personal loan and debt relief reviews How to repair and improve your credit score How to resolve student loan debt Civil law legal definitions Get answers to these FAQs on debt collection How-to debt guides Learn more with these additional debt resources FAQs

Melissa Lyken | December 07, 2023

Can a Debt Collector Take My Car in California? (1)

Legal Expert, Paralegal
Melissa Lyken, BS

Melissa Lyken is a senior paralegal and legal-finance content writer with over eight years of professional legal and business experience and a bachelor’s degree in Sociology and Community Studies from the University of California, Santa Cruz.

Edited by Hannah Locklear

Can a Debt Collector Take My Car in California? (2)

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Can a Debt Collector Take My Car in California? (3)

Summary: If you're being sued for your debt, you might feel like you're going to lose everything. Find out if the debt collectors can take your car and how to stop them.

Do you live in California and owe a debt to a creditor? If you've been sued for a debt, lost the lawsuit, and the court entered judgment against you, the creditor has several options they can take to settle the debt you owe. Typically, creditors may garnish your wages or other assets as a quick and easy means to pay your debt.

If luck is not on your side and you have a judgment against you, it helps to know if your possessions are at risk. If you want to know if a debt collector can take your car in the state of California, keep reading.

Know the Difference Between Debt Collectors and Judgment Creditors

If the original creditor is not suing you, your debt may have been sold to a debt collector responsible for collecting on that debt. A debt collector is a person or a party that usually acts on behalf of your original creditor.

A judgment creditor is a person or a party to whom the debt is owed. If you lose your lawsuit, the court will take inventory of your assets to determine how much you currently have to pay off the debt. To recover the debt, a judgment creditor can take some of the money from your bank account in what is called a bank levy. A bank levy freezes your account before you can withdraw all of your funds and allows the creditor to draw from it to settle the judgment.

Avoid bank levies by filing a response with SoloSuit.

See Also
The 8 Ways To Protect Your Assets From A Lawsuit You Should Know About | Best Redlands Probate, Trusts and Estate Planning LawyerJC White Law Group | Notice of Rights in North Carolina – What You Need to KnowWrits of Garnishment in FloridaExemption from the Enforcement of Judgments

If the money you have in the bank is not enough to settle the debt, the creditor may take a part of your paycheck as well. This is commonly referred to as Garnishment. When it comes to your paycheck, 75% of your income (after tax) is protected and can't be taken by the debt collector.

If you received a writ of garnishment, you should consider filing a claim of exemption to keep a portion or even all of your wages from being garnished.

Now to answer, that nagging question in the back of your mind, can a debt collector take my car? The answer is yes. Now, just because a debt collector can take your car doesn't mean they want to. Let's take a close look.

Find Out If Your Personal Property Is Seizable

Other than your money in the bank and your salary, a debt collector can also take personal property such as a car to settle a debt. Although a debt collector can take your car, there are some rules.

A judgment creditor usually enlists the local sheriff's department's help to seize personal property or a vehicle to recover the debt. When it comes to a property seizure, a person can protect about $6,075 in personal property. You can also protect no more than $2,300 of your car's equity, while the remaining value will be used to pay the debt. Though a portion of the equity in your vehicle is protected, the remaining equity is up for grabs to the creditor.

Depending on your car's resale value, it may or may not be worth it to the judgment creditor to go this route. The truth is, it may not be worth the hassle to sell your car, especially if it is an older model that doesn't have enough value to move the needle on your debt.

If you have a personal vehicle, a debt collector can legally take your car, sell it, and use the money to settle the debt. There's one crucial thing to keep in mind. If your debt is related to a property like a piece of land or defaulted on a car loan, these possessions can be repossessed to settle the debts.

Use SoloSuit to protect your assets by responding to debt collectors fast.

Settle Your Debt to Keep Your Car

If for some reason, you are genuinely concerned or have reason to believe that your car can or will be sold as a way to pay off your debt, you may want to consider reaching out to the Creditor to settle your debt. If the Creditor is willing to negotiate and work with you, you may want to work with the Creditor to institute a payment plan. If your car has a considerable amount of equity and you are concerned that it will be sold, it may be in your best interest to determine what other options you have available to settle the debt with the Creditor.

Although a judgment creditor can seize your property and vehicle against the debts you owe, you can protect yourself if you move fast and respond to the lawsuit. A debtor rights attorney can also help you if you are already facing judgment. Know your rights and protect your assets.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

See Also
What "Judgment Proof" Means

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources


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Can a Debt Collector Take My Car in California? (2024)

FAQs

Can a Debt Collector Take My Car in California? ›

Although a debt collector can take your car, there are some rules. A judgment creditor usually enlists the local sheriff's department's help to seize personal property or a vehicle to recover the debt. When it comes to a property seizure, a person can protect about $6,075 in personal property.

Read On ›
How can I protect my car from debt collectors? ›

Debtors can protect some of their assets from judgment creditors through their state's property exemptions. Exempt property is protected from seizure when a creditor gets a judgment against you. For example, if the value of your car falls under a state exemption, you get to keep the car if a creditor tries to take it.

Discover More Details ›
What are three things debt collectors are prohibited from doing? ›

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

Continue Reading ›
Can debt collectors take your car for credit card debt? ›

Debt collectors cannot repossess your possessions if the debt is unsecured, such as a credit card or student loan. In the case of secured debt, however, particularly auto loans, for which the car is collateral, failure to make payments can result in repossession of the vehicle.

See Details ›
What is the statute of limitations on car loan debt in California? ›

Generally, the statute of limitation for most consumer debts arising from written contracts in California expires after four years. So, in other words, the California statute of limitations on credit card debt, medical debt, student loans, and auto loans is four years.

Find Out More ›
What is the new law for debt collection in California? ›

California Coerced Debt: California SB 975, for debts incurred after July 1, 2023, requires a collector to cease collection until it completes a review when the debtor provides documentation and a sworn statement that the debt was coerced. A person who coerces a debt is civilly liable.

Tell Me More ›
Can I keep my car if it goes to collections? ›

If you have a personal vehicle, a debt collector can legally take your car, sell it, and use the money to settle the debt. There's one crucial thing to keep in mind. If your debt is related to a property like a piece of land or defaulted on a car loan, these possessions can be repossessed to settle the debts.

Show Me More ›
What happens if my car is charged off but not repossessed? ›

The lender typically won't release the lien or car title (if it holds it) until the loan is paid in full. In contrast, if your lender charges off an unsecured auto loan and doesn't repossess your vehicle, you likely will be able to sell it or trade it in, since your lender has no security interest in your vehicle.

Explore More ›
What happens when your car goes to collections? ›

Your car can be repossessed, or you could be sued for repayment. Charged-off accounts also damage your credit score. If you are behind on auto loan payments, the first step is contacting the lender or collection agency to pay off the debt or negotiate manageable repayment terms. You may even seek a car loan settlement.

Continue Reading ›
Can a credit card company sue me for not paying my debts? ›

Yes, a credit card company can sue you if you don't pay your credit card bill. While this is usually a last resort because of the time and money involved, it becomes more likely the longer an account is unpaid. Since credit card debt is unsecured debt, the creditor needs a judgment to collect from you.

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How many missed car payments before repossession California? ›

California law permits cars to be repossessed after one late or missed loan payment. Cars may be repossessed after missed insurance payments as well. There is no legally required grace period, and the repossession company doesn't have to give you notice that they are repossessing your car.

Read The Full Story ›
How long before debt collectors give up? ›

Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt.

See Details ›
Can a 10 year old debt still be collected? ›

Can a Debt Collector Collect After 10 Years? In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.

Get More Info Here ›
What is the 11 word phrase to stop debt collectors? ›

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

Continue Reading ›
What are the defense against debt collectors? ›

Defenses in these cases often hinge on technicalities or procedural rules. Sometimes a debtor may argue that the creditor or collector did not properly document (or verify) the debt, or they may assert that the collections lawsuit is time-barred.

View More ›
How can I protect myself from debt collectors? ›

You may stop a collector from contacting you by writing a letter to the agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact, or to notify you if the debt collector or the creditor intends to take some specific action.

View Details ›
Is there a way to block debt collectors? ›

If you ask a debt collector to stop all contact – regardless of the communications channel – the collector must stop. Keep in mind, though, that you could still owe the debt. If you don't want a debt collector to contact you again, write a letter to the debt collector saying so.

See More ›
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