Can a vehicle be repossessed if the loan is not in default but other unsecured debts are.?
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Seperate loans, have no right to car

The two loans are seperate as you said it was "unsecured," so it doesn't seem they are able to. The Credit Card company will list as defaulted if over 6mo past due and they will then sell it, giving 7years for the next company to collect on it before it is either paid by you or sold again. Don't let it go into default ^25% and affects your credit! They could foward this to their legal team and set you up for a possible wage garnishment, or sue for non-payment of debt. Why pay ahead on one loan when behind on another? I'd pay the car first but at least make a minimum pymt on the CC.

Maybe.

Even though the vehicle is a secured debt and the loan is not, if more than one of the financial transactions is by the same institution it is possible a set off clause was included in the contract terms allowing the lender to take the vehicle if the personal loan is defaulted.

Unsecured only means there is no specific property being held as collateral for the debt, it does not mean assets or property of the debtor's cannot be seized and sold for repayment by means of a lawsuit judgment.

A garnishment is only possible if the lender wins a lawsuit and executes the judgment as a wage garnishment.

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First answer by ID1171105766. Last edit by Macky. Contributor trust: 3358 [recommend contributor]. Question popularity: 29 [recommend question]

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