WHAT IF THE LENDER DOESN’T REPOSSESS YOUR CAR? This means that: You are stuck with it – if the lender doesn’t come to pick up the car. You can’t sell it – because the lender still has the lien, and selling it would be committing a theft.
What happens if you can’t pay your loan back?
If You Don’t Pay If you stop paying on a loan, you eventually default on that loan. The result: You’ll owe more money as penalties, fees, and interest charges build up on your account. Your credit scores will also fall.
Can a loan company take my Car for unpaid debt?
For example, you owe a loan company $10,000 for some on-line debt and they sue you and obtain a Writ of Seizure. You allow them to take your car and sell it, but you claim your exemption limit of $6,600. The car sells for $8,000 at auction. The costs to sell are 15% or $1,200, so there is $6,800 left over. The first $6,600 has to be paid to you.
What happens to my car loan when I sell it?
When you voluntarily surrender your vehicle, the lender will sell the car to recover as much of the money owed as possible. If the car is sold for less than the amount you owe on the loan, you will be responsible for paying the remaining amount. In your case, you mentioned paying a settlement balance.
What happens if you are sued for a car loan deficiency?
If you are being sued for a car loan deficiency, do not ignore it. You still have an obligation to the lender for the deficient balance, even if you don’t have the vehicle. If you disregard a summons to appear in court, the case will proceed without you and a default judgment could be entered against you for the balance of the debt.
Can you go to jail for not making your car payments?
It is likely your state has a similar law, but as previous entries have clearly stated, non-payment is a civil problem, and there is no jail for breaching a contract. The other post have certainly provided you with excellent information, your next…
