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Repossession
Seizure of property bought on credit for which loan payments are not being received. Please note that when asking a car repossession question, it is often useful to include the state that you live in. This will enable people to give you better answers.
11,694 Questions
What is the statute of limitations for debt in Pennsylvania?
contracts- 4 years(used to be six) contracts under seal- 20 years sale of goods under UCC- 4 years negotiable instruments- 6 years(13 Pa C.S.A. subsection 3118)
Debtor's rights to there personal property in a repossessed vehicle.?
It depends on the state in which you reside. Most of the time, if the personal property is permanently affixed to the vechile (stereos, tires, etc), you have no rightful claim to them. Items that are loose in the vehicle such as cell phones, books, CDs, etc, have to be returned to you at no cost.
Get a new car.
== If someone hit your car you will be paid the actual cash value of the car. If you totaled the car and had collision coverage you will be paid actual cash value, too.
if you want to
Can a collection agency garnish wages?
Yes, with a valid judgment any creditor can garnish wages in the majority of U.S. states.
Yes you you have to pay the balance left plus the fees associated with the repo and auction.
When your car is repossessed when do you cancel your insurance coverage?
The same day that you determine you aren't getting it back. It would be wise to wait until then because if the bank repo'd it to kinda just remind you that being 3 payments behind isn't a good thing, you might get it back and then you don't have to go through the whole insurance application process again.
AnswerYeah for sure do not cancel anything until it is no longer in your name either. I'd wait until the title transfer is complete as well. AnswerYou should cancel your insurance the moment your car is repossessed.The moment the car is hooked up(as the above two repo morons will tell you)it is no longer your car.So if you would like to cover someone elses vehicle with your insurance you go right ahead but you are wasting your money and your insurance coverage.Dishonest repo guys(like the above two scumbags) want you to keep the insurance on the vehicle so if they damage the car or steal stuff from it it will go on your insurance.ANSWER Amendment:
Never cancel an insurance policy until you have a new policy in place. If you do it will cost you more in the long run. Insurance companies are looking for loyalty and longevity without lapse in coverage. Sometimes you can possibly suspend, cancel or reduce coverage but never cancel it.
The moment the vehicle is repossessed does not release you from the contract agreement. Read it. In most cases until the vehicle is transferred out of your name via the title of ownership, you must maintain physical damage coverage or they can force place it and take the premium out of the proceeds.
Reduce to minimum but don't cancel it.
What happens if your repossessed house is sold for less than what is owed?
You owe the difference I think.
They will try to collect the balance themselves or sell it to a collection agency or seek a judgment thru the courts.
AnswerIt's called a deficiency. Google it and you can read more about the specifics and local laws that apply in your area. AnswerGenerally, they usually try and get you to come in and pay it off. If they can't, then they usually either proceed with legal action or charge it off. If they take legal action, you may lose and owe attn'y fees as well. In the end, if found responsible, you will have a judgment placed on you and they can garnish wages, tax refunds or any income you receive. A judge could also order you to sell other property to pay it off (in extreme cases). Bottom line, it's always just easier to pay off the loan.If you already have insurance on the family-car, then you can put the sports car on your insurance and tell them you will be the only driver of the sports car. Make sure no one else gets caught driving the car by the insurance company (wreck, etc.). Or look in the yellow-pages in your phonebook, and call several car insurance companies. They should be able to tell you. Always call 3 or more places to get the lowest deal you can, depending on what plan you want or qualify for.
If you let someone drive your car and they crash are they covered?
yes they are covered IF you had coverage, your insurance should pay up to your limits. If claims exceed your coverage, any auto insurance policy the driver might have would pay. If the damage exceeds your combined limits, you could both be sued for any remaining amounts.
Yes they can repo if they catch the insurance lapse. Most financed vehicles have a Full Coverage clause that you signed and agreed to when you contracted to finance the vehicle.
What do you do with a totaled car?
If you actually, "own the car still" and the insurance didn't keep it, sell it for parts in your local trading post, sell it to a junkyard or buy another one and keep it for parts.
If they get a judgment they (or anyone they sell your debt too) can garnish yourwages and yes they will report it to a credit bureau.Try too buy a used car and pay for it outright you will save alot of money.
What is the difference between a car been repossessed or voluntarily surrendered?
AS far as your credit goes there isn't any a repo is a repo it stays on your credit for seven years.A voluntary repo can save you $200-300 in repo fees .You are still charged all the fees related to preparing the car for auction and auction fees etc. which run between $500-700 and up.And of course that is added to the balance after the the car is sold.
Here's a very short history from AllPar: "Failing automakers Hudson and Nash merged their fortunes to become American Motors Corporation, hoping that they could reap some economies of scale. Eventually, due to slow sales for their overweight cars, they were bought by Renault, partly to increase Renault's sales in the US. Renault's attempt failed, and Chrysler, under 'buy and sell' Iaccoca, bought AMC. Iaccoca, for unknown reasons, dropped the AMC name, replacing it with Eagle."
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 .
If you surrender your car because you can't afford it how much do you have to pay on the balance?
IN MOST CASES ONCE YOU GIVE THEM BACK THE CAR THEY WILL RESALE IT AND IF THE CAR WAS ORIGINALLY 15 THOUSAND BUT THEY COULD ONLY SELL IT FOR 13 THOUSAND THAN YOU WOULD HAVE TO PAY THE REMAINDING BALANCE WHICH IS 2 THOUSAND
The Civil law you are breaking is not paying on your contracted amount with the creditor. The Criminal law you are breaking is - in most states - called Fraud upon a Creditor by deliberately concealing the vehicle.
If your wage is already garnished can they garnish it again before the other one is paid?
Wage garnishment laws and procedures vary by state. Wage garnishment is usually not a one time thing. A wage garnishment order will usually last a specified time or until the judgment is paid in full, whichever comes first. Unless the garnishment is for child support or spousal support, the most they can garnish is 25% of your net pay and you can only have one garnishment going on at a time. A little further information, wage garnishment for creditor debt is not allowed in North Carolina, Texas or Pennsylvania. It is not strictly prohibited by the laws of Florida and South Carolina, however the requirements make it very difficult for a creditor to garnish the wages of the head of household. Wage garnishments cannot run concurrently, this does not mean that it is not possible for a different creditor to levy the debtor's bank account or take other action if they have a valid judgment.
Are you responsible for the unpaid car loan after your car has been repossessed?
No. Once your car has been taken away, that is the payment. The bank will have to resell the car and get what they can out of it. It depends on the state. Some (like mine) do not require the remaining balance after a resell. But your credit does get ruined for 7 years. The above answer is incorrect. Once they repossess your car, they will sell it. You are responsible for the difference in what the car sells for and the balance on the loan. You may also be responsible for the repo fees, depending on the state you live in. You credit will also be ruined for 7 years.
Normally a repossession stays on your credit rating for 7 years. If you are repaying the loan, talk to the bank and see if they have reported it. They may or may not have.
