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I had the same question and just got off the phone with the IRS and they said yes and to read Publication 4681.
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∙ 14y ago
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Can a car be repossessed because someone is borrowing it?
I wanted to add to my original question...Our car was repossessed by the finance company because they said they found out someone else was using the car because of car payments being sent from a different address. AND, they stated that they wanted to see the condition of the car. I thought a car would only be repossessed if you were late on payments? I have never heard of this, so I don't know what is going on.
Will the IRS take your taxes if your car was repossessed?
No, but if the bank writes off any portion of the loan as a cancelled debt and reports it you on Form 1099-C, then you must include that on your tax return as income. Cancelled debt is taxed as income under the Internal Revenue Code.
What happens if you get your car repossessed?
if i get my car repossessed, can they put a llien on the house?
How can you locate your repossessed car?
Your car was probably repossessed by the lender who owns the car until you pay for it. Call your lender and they will be able to tell you how to locate your repossessed car.
Can you go to jail after your car has been repossessed and you don't want to pay the loan?
No you can't be sent to prison.You can declare bankruptcy .
Car was repossessed with no letter of intent sent no notice of actionwas law violated?
Your car can be repossessed at any time without any warning if you aren't making your payments. It is probably in your paperwork in the fine print what happens when you don't make your payment.
Can you be sent to civil court after a car repossession?
Yes. Most lenders will auction a repossessed car and sue the person who financed the car for any balance or fees still owed.
Why would you get a refund for overpayment on a repossessed car?
When a vehicle is repossessed, it will eventually be sold at auction. Occassionally, the amount received from the sale is greater than the balance owed. On these occassions, the excess is sent to the debtor.
Can your car be repossessed if you lose your job?
No, but your car can be repossessed if you don't make the payments.
Why is the IRS billing for a car that was repossessed?
What probably happened was this: When your car was repossessed, the bank took the car to an auction. As an example, if you still owed $10,000 on the car and they sold it at auction for $5,000 then you are still liable for the remaining $5,000 on the loan. The bank probably wrote this off as a bad debt, and reported it to you as Cancelled Debt (Form 1099-C). Under the Internal Revenue Code, cancelled debt is taxed as income unless you qualify for an exception (either being in bankruptcy or being insolvent at the time the debt was forgiven).
Can a car be repossessed from a car dealership?
if the car dealership does not pay for the car in full or pay their bills then the car would most likely be repossessed
Can a car be repossessed with a person in the car?
No.
