Binding Agreement

What is the name of your state (only U.S. law)? California

My car was repossed due to late payments and now the bank is after me for monies owed to the vehicle. They were telling me that since I have signed a "binding agreement" that I am still responsible for the monies owed to the vehicle. As a matter of fact, they are getting ready to garnish my wages. What is my right as far as owing this debt since they took the car back from me.

You have the right to pay what you owe, per your agreement.



Hypothetical Example to Follow:

You have a car. It has a loan for $15,000 outstanding. You default on the loan and the vehicle is repossessed. The bank sells the car at auction for $10,000 which leaves you on the hook for $5,000 (plus fees, etc.)

You have what is called a deficiency. The bank cannot garnish your wages unless you are sued and they obtain a judgment against you.