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What legal action can a creditor take if you have defaulted on your loan and the vehicle cannot be found anywhere?
Wiki User
∙ 19y ago
"vehicle cannot be found anywhere? " NO candy for you...If you were the bank, would you believe that line?? Rem ,Cars DONT fall off the face of the earth. Spmeone's bbaby's mothers aunties boyfrined is driving your car. IF it was stolen, YOU would have reported it to the cops.Good Luck http://www.capitol.state.tx.us/statutes/cvtoc.html CHAPTER 31. JUDGMENTS SECTION 31.001. PASSAGE OF TITLE SECTION 31.002. COLLECTION OF JUDGMENT THROUGH COURT PROCEEDING SECTION 31.0025. AUTHORITY OF COURT TO ORDER TURNOVER OF WAGES SECTION 31.003. JUDGMENT AGAINST PARTNERSHIP SECTION 31.004. EFFECT OF ADJUDICATION IN LOWER TRIAL COURT SECTION 31.005. EFFECT OF ADJUDICATION IN SMALL CLAIMS OR JUSTICE OF THE PEACE COURT SECTION 31.006. REVIVAL OF JUDGMENT SECTION 31.007. PARTIES RESPONSIBLE FOR ACCOUNTING OF OWN COSTS SECTION 31.008. PAYMENT OF UNCLAIMED JUDGMENT SECTION 31.010. TURNOVER BY FINANCIAL INSTITUTION
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∙ 19y ago
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Can you be sued if you pay something on a defaulted credit card?
Yes. If the account is not paid as agreed in the original contract the creditor can sue the debtor, but they ususally try to avoid legal action.
Can a creditor garnish wages if you send them a small amount of money?
Yes, if the creditor chooses to sue the borrower and receives a judgment award the borrower's wages can be garnished. Please be advised, once a lending contract has been defaulted the lender can take whatever action they choose, the fact that they may accept a lower payment then originally agreed on does not mean they cannot pursue a lawsuit.
Can a creditor with a judgment levy a Montana bank account?
Yes, in most cases such such action is possible by a judgment creditor.
When a defaulted secured loan is charged off and the property isn't repossessed but the account is turned over to an attorney do you still have to pay the loan?
Absolutely, a charge off does not affect the validity of a debt. The issue of the account being referred to a collections attorney or law firm may indicate that the creditor has decided to file a lawsuit or enter into arbitration action to recover the debt.
If you can't make full payments on your car but do attempt to pay by making reasonable payments can it be repossessed?
Yes. It is an absolute fallacy that a creditor/lender has to accept any payment other than the full amount that was agreed upon in the original contract. Many consumer's are under the impression that as long as they make a payment of some type to a credit card issuer or lending institution, respossession or legal action is not possible; that is totally false. As soon as a borrower misses a scheduled payment the contract has been defaulted on and unless there is a "grace" period, the creditor can take any action deemed necessary. Additonally, the lender can continue to accept lesser payments and apply them to the interest and penalty fees and be within their legal rights to file a lawsuit, repossess a vehicle or begin foreclosure proceedings.
Can you be sued if you pay something on a defaulted credit card?
Yes. If the account is not paid as agreed in the original contract the creditor can sue the debtor, but they ususally try to avoid legal action.
Can a creditor sell a repossessed vehicle they have had in their possession if the debtor files bankruptcy?
Possession is 9/10th of the law. Not if the vehicle qualified to be listed in the bankruptcy filing. In which case no action pertaining to the vehicle can be taken until the bankruptcy proceedings are finished.
Can a judgment creditor clear the lien on a car title when more than one owner is on the title?
Not sure what is intended by "clear" but whether or not the vehicle can be seized depends upon a couple of issues. The most important one being how the vehicle is titled. If the names on the title are separated by the word "or" then each person has total ownership of the vehicle and may take whatever action they choose without the other owner being a part of it. That would mean the vehicle could be subject to seizure by a judgment creditor. If the names are separted by the word "and" the vehicle is owned jointly and no action including creditor judgment can be taken without the consent of the other owner. The other issue is whether or not the vehicle is protected by the exemption laws in the state where it is registered.
Can a creditor garnish wages if you send them a small amount of money?
Yes, if the creditor chooses to sue the borrower and receives a judgment award the borrower's wages can be garnished. Please be advised, once a lending contract has been defaulted the lender can take whatever action they choose, the fact that they may accept a lower payment then originally agreed on does not mean they cannot pursue a lawsuit.
What does it mean when a creditor files a motion to release?
The creditor is asking to be excluded from the bankruptcy. If that is granted the debt will be valid and the creditor can resume collection action.
Can a creditor with a judgment levy a Montana bank account?
Yes, in most cases such such action is possible by a judgment creditor.
Can a creditor force you to sell your car?
If the creditor wins a lawsuit judgment against the debtor he may be able to execute it against a vehicle belonging to the debtor defendant. States establish vehicle exemption which are to be used to prevent a forced sale by a judgment creditor. Judgment creditors however rarely take such action, as the seizure and sale of a vehicle is complicated and seldom worth the effort needed. Creditors prefer to execute a judgment as wage garnishment, bank account levy or a lien against real property as means to recover debts owed.
What amount of time must a dealer give you before they repossess your vehicle because you heard it was 90 days?
There is no set time when a lender may instigate repossession action. If the contract is defaulted on for even a day, in most states the lender can seize the vehicle, although it is not usually in their best interest to do so.
Can your wages be garnished if you are paying less than the minimum required amount monthly on medical bills?
It is possible. When a contract is defaulted the lender/creditor may use whatever method is available under the laws of the debtor's state to recover monies owed. Consumer's sometimes believe that if they pay any amount oon the debt and the creditor accepts the payment, other action cannot be taken, this simply is not true. It might be prudent for the debtor to contact the creditor and try to negotiate more affordable repayment terms.
Why hasn't the creditor picked up the secured vehicle if you filed chapter 7 bankruptcy and if they don't is it yours to keep?
More than likely the lender has not requested as yet had the BK stay lifted. If a secured creditor does not receive permission to be excluded from the BK they must wait until the discharge is final before proceeding with repossession action. No, the borrower does not get to "keep" the vehicle unless they are able to reaffirm the loan with the lender.
If there is no motion for relief a year after filing bankruptcy and turning in a vehicle and it is still in your possession do you get to keep it?
The answer probably depends on the laws of the State in which you live. In Indiana, I tell my clients to file a small claims lawsuit against the creditor, not asking for money, but asking the court to Order the BMV to issue a clean title to the vehicle to get rid of the creditor's lien on the title. If the creditor doesn't show up and oppose the small claims lawsuit, the courts generally grant it since they presume the creditor abandoned their interest in the vehicle. After a year, creditors very seldom show up (in fact I don't think a creditor has ever showed up on one of my clients who tried this). If the creditor did show up and want the car, though, I suspect the court would give it to them (though I suppose one could atleast ask the court to award them some storage money for having stored the vehicle for a year). While this seems to work in Indiana, it may not work anywhere else so I would recommend asking an attorney in your area. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
What type of legal action can be taken if your car is reposed?
If the creditor and repo agency did their thing by the book, you really have no legal recourse. As long as the creditor holds the lien on the vehicle, it belongs to them, and they have a legal and binding right to reclaim it when you fail to make your payments. Besides, if you tried taking legal action, the judge would probably chastize you for your inability to make your payments in spite of being able to afford a lawyer, then throw the case out.
