Any remaining debt could be sent to collections. Your wages could be garnished; a lien could be put on your home. Even if you pay off the debt, an account in collections remains on your credit report for seven years from the date of delinquency.
What is exempt from debt collection?
When the law protects certain income and property from debt collection it is exempt from collection on a judgment. A creditor with a judgment sometimes will levy on a bank account with exempt income in it. Your income and property are only exempt if the money you owe is from an unsecured debt.
What happens if my car is repaired on Finance?
Hopefully this will replace the car for you and you can continue to pay the finance company as before. You really don’t want the car repaired as it will then be worth a whole let less than what you owe on finance. Will have to wait and see then when the car is taken tomorrow by the garage.
Can you return a car with a finance agreement?
If you’re not interested in financing a different car then don’t expect an easy ride from that dealership. Officially, you don’t have any right to return a car with there being nothing wrong with it. It’s all on you to do the proper homework, car valuation, and even a history check on a car before buying it.
What to do if your car finance is in arrears?
If you are struggling with your finances and have, or are at risk of going into arrears with your car finance agreement, call a Creditfix advisor for free, confidential advice on 0800 431 431.
What to do if your car is denied financing at the dealer?
Obviously, the easiest thing to do is simply return the car to the dealer as you have probably been requested to do. You will potentially lose any investments you have made in the car, but may be able to get back any fees you paid to the dealer.
