QUESTION
Can a car get repossessed if it is still financed?
Asked on Oct 13th, 2013 on Bankruptcy - Colorado
More details to this question:
I took out a $500 registration loan a few months ago. I currently don't own the vehicle and still am making payments to the finance company and owe around $6000-$7000 to pay it off. I recently lost my job and do not qualify for unemployment. The finance company is working with me on the payments until I get on my feet, however the registration loan company is refusing. I am currently two payments behind ($80 total) and they are stating that I have to pay this or they will begin "legal action." Can they repo my car if it is still financed?
4 ANSWERS
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
I have never heard of a registration loan. Your vehicle can be repossessed by the secured lender on the title or a bailiff.
Answered on Oct 15th, 2013 at 6:11 AM
I am not acquainted with registration loans. If they sue and obtain judgment, the company can file a judgment lien. They probably will not collect anything because your lender has a first party secured interest in the vehicle; the car value is probably less than the outstanding loan balance.
Answered on Oct 15th, 2013 at 3:55 AM
2 Awards
They will take the car subject to the financing already in place.
Answered on Oct 14th, 2013 at 2:18 PM
Deborah F. Bowinski
It depends on whether there is any equity in the car above and beyond the loan balance. They can almost certainly, though, sue you on the promissory note and get a judgment against you which would allow them to garnish wages and bank accounts once you are back to work.
Answered on Oct 14th, 2013 at 2:03 PM