I still owe money on the car that my lender repossessed two months ago. I thought it just got charged off; can they bring a lawsuit against me?
Should you disregard a court summons, the case will proceed without you. A default judgment could be entered against you for the balance of your car loan, which in turn could lead actions such as bank account garnishment, property liens, or in some states, wage garnishment.
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JERRY INSURANCE AGENCY is a insurance agency in 50 states. JERRY OFFERS INC. is a loan broker/lender. You can view licenses issued by NMLS using the NMLS-2129773 Identifier Number for JERRY OFFERS INC. Copyrights © Jerry 2022. All rights reserved.
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What are the consequences of not paying your car loan?
When you don’t make your car loan payments, a lot of bad things can happen. Each month you miss a payment lowers your credit score. Your vehicle may be repossessed if you are unable to resume payments and catch up. Even worse, even if you no longer own your old car, you might still owe money on it.
What are three possible consequences of defaulting on a car loan?
If nothing else, defaulting on your auto loan will lower your credit score. Additionally, you run the risk of losing your car or, worse yet, being sued. There are steps you can take to get your finances back on track if you’re concerned about defaulting or have already done so.
Can a car loan be forgiven?
Some auto loan providers will forgive debts, but doing so requires the borrower to voluntarily surrender the vehicle. However, simply because the lender returns the vehicle does not imply that the loan has been repaid. Call your lender if this is your only choice to find out how they will work with you.
Can you settle a repo car debt?
You have three options: pay the deficiency in full, arrange for the lender to accept payments over time, or come to an agreement. It might be best to do nothing in some situations, and bankruptcy may be an option in others.