If my pickup and trailer were impounded and sold by the towing company, can they also sue mefor any balance still owing?

UPDATED: Aug 18, 2011

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If my pickup and trailer were impounded and sold by the towing company, can they also sue mefor any balance still owing?

My pickup and car hauling trailer was impounded due to no driver’s license back 8 months ago. I was not able to get any of it back. The tow company sold the truck and the trailer, but they are now suing for the money not recouped from the trailer. Is that legal after taking my trailer and selling it? I just found out; they just contacted me today. If the amount they claim is owed isn’t paid in full in 5 days, then they will put a lien on our house.

Asked on August 18, 2011 California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It appears that you were still making monthly payments on your pickup and trailer to a lender when they were impounded. You failed to make the monthly payments on these items and they were then sold at auction by the lender as allowed under your loan agreement.

It seems that the pickup and trailer sold for less than what was owed on the loan leaving a deficiency owed your lender. Your lender under its loan agreement is now wanting to be paid for the deficiency owed on the loan and if you do not pay the amount owed, it plans on filing an action for the amount claimed due against you.

What the lender plans on doing is allowed under its contract with you and California law.

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