I sold my car to my sister for $2500 in the state of California and she has stoppped making payments. What can I do?

Hire a Cal lawyer to sue her for the debt.
You might find my legal guide on selecting and hiring a lawyer helpful.
You might find my legal guide on Is it Legal? Is it Illegal? helpful.
You might find my legal guide on the understanding the different court systems helpful.
You might find my legal guide on legal terms used in litigation helpful.
(Even if you are not filing a lawsuit this information can be useful).

You might find my legal guide on commercial litigation helpful.
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LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.

First of all, you have my sympathy. It is miserable being involved in something like this with a relative, particularly a sibling.

For the amount in question, you will need to go to small claims court. In that court, you are not allowed to be represented by an attorney. Also, given the amount in question, it probably would not make sense to hire one.

You said that she is ignorning your calls and e-mails. Do you know if she or others in her household have lost their jobs? Unless this is typical behavior from her, you may consider that her financial situation is the reason for the nonresponsiveness.

While she ignores your attempts at contact, she may well respond to a letter from an attorney. You may be able to find an attorney who will write a letter on your behalf for an amount that makes sense even given the relatively small amount you have at stake.

Before you attempt this, I recommend that you write a concilliatory e-mail to her attempting to find out if she is simply unable to pay and offering to work with her over time if that is the case. Bear in mind, however, that the statute of limitations in California for breach of a written contract is 4 years from the date of the breach. Therefore, if you have not resolved this issue within four years from her first missed payment, and have not filed in court by then, you will have waived your right to obtain legal redress for this.

Best of luck

First, whenever you sell a vehicle you should have the buyer sign a bill of sale and then go to the DMV and transfer the title to the vehicle to the new owner. Whenever a payment plan is provided, the seller should require the buyer to sign a promissory note that provides the seller with the right to repossess the vehicle in the event of a default.

As to your question, I would suggest you send your sister a letter. The letter should:
1. first express concern and inquire as to why she has missed her payments.
2. State the terms of the deal, the amounts she has paid, and the balance owed.
3. Offer an alternative payment plan.
4. Close with a statement that if there is no response you will be forced to file a lawsuit in Small Claims Court.

Because the amount owed is under $7500, Small Claims Court is the proper venue for such a claim. This is unfortunate because you are located out of the country, and a Small Claims Court case can only be brought by the individual. Attorneys are not permitted to represent clients in Small Claims Court,

You should be advised that the Statute of Limitation on a written contract is 4 years. That means, you have 4 years from the date of your sister's last payment within which to file your claim with the Small Claims Court. If you wait more than 4 years, you will no longer be able to collect on the debt owed.

Disclaimer. The above is provided for informational purposes only, does not constitute legal advice, and does not create an attorney client relationship.