what happens to you if you don't turn back the car to the bank you owe money on it? can you go to jail?

Question

or if they don't find the car?

Answer 1

The process of auto repossession immediately sets the legal motions of impounding the vehicle. The police will be looking for your car and it will be taken by force and towed away. If you resist the police or bear false testimony concerning the car, then charges will be filed on those counts.

Since the bank holds the title (and not you) this situation is very similar to you loaning a car to a friend and then asking for it back. As the owner, you will file motions to recover your car, if it is not freely returned in a timely manner (or as per the conditions of a prior written/contractual agreement).

Oh, yes, and then there are credit implications (how much do you want your credit score hurt?) and additional fees, etc.

Answer 2

I'm not a collections officer, but I do work at a financial institution (in Canada). As far as I know, if you owe money on a car and you haven't been making payments, you have to be notified in writing that your bank is taking collective action, and then, all bets are off. They can hire a baliff to come and collect the car -- no matter where it is -- and seize it.

If they can't find the car, they MIGHT come after you legally and try to force you to either disclose the whereabouts of the car, or voluntarily surrender it. Then again, they may not have to; you'd be surprised at how often the bank itself will find hidden assets or collateral without any help from the loan holder. I honestly don't know if they can press charges against you (they may be able to, if you are willfully hiding property against rightful and legal seizure); I'd check with your local police.

The action the bank takes depends a great deal on the car and the money still owed on it. If the outstanding loan is a large amount (say, the car is an '07 BMW, or some kind of expensive ride), then they will most likely take you to court, sue you for the outstanding amount, and absolutely destroy your credit rating (and, if you're hiding the car, they'll probably find it, anyway, so you'll be broke, uncredit-worthy, AND without a ride). If you're trying to hang on to a little beater (like a '82 Honda Civic with 400 000 miles on it and it's covered in rust), they'll more than likely write off the debt, and still destroy your credit rating.

If this is actually happening to you or someone you know, I highly suggest talking to a credit counselling service or the bank where the loan is taken. When things get this bad, banks can get downright nasty. Discussing the financial situation with the bank or letting them know you're trying to make things right can go a long way in them deciding how hard they want to nail you.

Just my thoughts... :)

Answer 3

Theft by taking doesn't look good on a resume; However, when you default on a car payment, the Bank calls their repo man after so many attempts to get you to pay fails
If the car cannot be found, you are held liable for the money owed when the bank goes through the channels to issue you a subpoena to appear in court.
Now if you do not appear in court when there is over 10,000 owed on the vehicle you will then be issued a ctiation for failure to appear and ordered to appear in court on so said date.

Then the Judge will rule in favor of the Bank and you are herby ordered by the court to pay so said sums of maoney or a garnishment against your earned wages is losked on to you and they take what they want out of your check and you have no say so. They can take 75% of your check and that is almost all your money. You got o court and pick up your remainder every week and it aint much.

The other side to it is that without the vehicle and you appear in court you can be charged with theft by taking, or Grand Theft Auto and you are then hereby ordered and charged. Then you must either return the vehicle or go to jail/
The bottom line/
Do not run from this problem. Give them the car back if can;t pay it and save your self a heap of trouble.

Answer 4

They will find the car, even if you sink it, which wouldn't be an easy task anyway. Your name is tied to the VIN # of that car and so is the bank. If you scrape off the VIN #, and they find the car, which they will, they will come looking for you because that is against the law. Besides, there is more than one place where the VIN # is located on cars. All police watch the chop shops.
Credit recovering agents threaten people with going to jail, but the only thing that they can legally do is ruin your credit rating. Don't worry about giving it back. They will hire somebody with a tow truck to come and steal it at night when you aren't looking. Once they get it out into the street, it is no longer your property, but since you signed a contract, they will still be able to make you pay one way or the other.
Just pay it off and be done with it!

Answer 5

If you default on a car loan, most likely what will happen is that the bank will sue you. They'll ask to get the car back and for a judgment against you in whatever amount is still left on the loan after they sell the car at a repo auction. If the bank wins the lawsuit, they'll get a writ that allows the sheriff or other law enforcement personnel to actually retrieve the car from your possession. They'll send you written questions to try to find out where the car is if they can't find it, and if you don't answer, the court could hold you in contempt. Only when it gets to that point can you go to jail.

Even so, I'd try to work something out with the bank. Bad credit and judgments against you aren't worth hanging on to a car you can't afford.

Answer 6

No, you don't go to jail.

advice, drive the car as much as you can don't make payment to bank. Park car in different location at night, so them repo can't find you.

At work park it some where far away so bank repo can't find you.

change the licence plate on it if necessary.

Do what ever it take to use the car as long as not pay a dime to f.uc.king bank.

And at last if u want freedom from finance park in some location where mexican can steal it, file police report and your free.

if not set an accident for someone to hit you and your free plus some cash in the bank, make sure u don't dies.

Answer 7

You will screw up your credit more if you dont return the car.If you return the car they will auction it off for a different price and then you will still be responsible for the other amount.It will stay on your credit for 7 years.If you cant afford the car your best solution and piece of mind would be to return it so you will get credit for being responsible.

Answer 8

Yes, this is theft, depending on how much you owe, it may be grand theft auto, and you could be behind bars for a while. Do the smart thing, return the car, or pay for it.

Answer 9

well the car will get re-possessed but you will not go to jail. If they don't find it, then keep driving it.

Answer 10

The repo man will eventually find it.