Can a finance company repossess your car if the payments are current but you have an old debt?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a finance company repossess your car if the payments are current but you have an old debt?
Both cars were financed from same company but years apart. I purchased a car but due to an accident it was totalled and the insurance company paid the balance. I did not know there was a $2500 balance left, until they just repossesed my current car. They are using that as leverage to get the old debt paid.
Asked on June 22, 2012 under Bankruptcy Law, Virginia
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Whether or not the lender that has a security agreement in the car that you just had repossessed due to a $2,500 balance owed on another debt can legally repossess such a vehicle depends upon what is stated in the last security agreement that you presumably signed with respect to the car that was just taken.
As such, I strongly suggest that you read the documentation that you have with respect to the loan of the car that was just repossessed. Your answer whould be contained in the documentation. If there is no mention of the lender being allowed to do what it did, or even if there is mention in the paper work, I suggest that you consult with an attorney that practices in the area of consumer debt law about your matter.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.