How should we deal with a deficiency demand for an old repossessed car?

Unfortunately, if he does not pay his wages and bank accounts will be garnished.

If the creditor can prove your husband owes it money according to the terms of the lease contract, the creditor has a right to get a declaration from the court of how much is owed. The declaration of how much the creditor is allowed to collect, with the aid of the sheriff, from your husband's non-exempt property or money is called a judgment. If your husband believes he does not owe all or a part of the amount of money the creditor alleged in its "complaint," your husband can file in the court clerk's office, for himself acting as his own attorney, a written answer denying the parts of the complaint that are inaccurate. Your husband can get a copy of the Answer Form from the clerk's office in the courthouse where the case is pending. It appears that the car was repossessed approximately four years before the creditor filed his lawsuit. If more than four years passed from the time lease payments stopped until the creditor filed his complaint with the court, the creditor may be barred from collecting the claim by the California Statute of Limitations for contract claims. If you calculate that the Statute of Limitations applies, your husband can state this defense in his Answer to the Complaint. If your husband does not answer the complaint, the creditor will request entry of "default" from the court clerk. This means the court clerk will enter in the court record a note that the deadline for your husband to answer the complaint is passed, and the effect is your husband may no longer present any denials or defenses. After the clerk enters a default, the creditor will present sworn statements and documents to the judge to prove the claim for money, and if the judge agrees with the claim, the judge will render a judgment as to how much money the creditor can try to collect from your husband. If your husband has no non-exempt separate or community property or money, the creditor will be unable to collect the judgment. However, the creditor can try to enforce the judgment for ten years, and the creditor can petition the court to extend the life of the judgment for an additional ten years. If the creditor gets a judgment and is unsuccessful in seizing money or property to collect it, the creditor may give up and go away without ever bothering you again. If, however, the creditor relentlessly pursues you more than you can handle, you could consult with a bankruptcy attorney. Upon the filing of a bankruptcy case, an automatic stay (same as a restraining order) will issue. The automatic stay prohibits creditors from taking any further collection action against you or your property. If the bankruptcy judge issues the bankrupt debtor a "discharge," then the claim will be forever extinguished, and the creditor will be forever enjoined from collecting it.

It's always pretty dicey to "reply by mail." Reply to who, first? A summons usually requires a reply to the Court and often consumers confuse replying to the creditor with a formal court Answer. Sometimes it's in your best interest to do that, but I don't advise anyone to do that unless and until I have sat down with them, explored their options and defenses including bk, then advise them in writing of the potential bad outcomes to that approach. At the end of the day, litigation is a specialized field with hefty consequences and this kind of site does not lend itself to that type of response. There are always attorneys who will sit down with you for a fee and go through your options. Even a couple hundred dollars is worth knowing if your future wages could be garnished, no?

You may consider a chapter 7 or 13 bankruptcy. Otherwise you may be garnished or make an agreed judgment and repayment plan.

The answer can be filed by mail, but at some point he will have to appear in court. Failure to do so will result in a judgment against him.