My friend has a 2001 Chevy Silverado but its crashed and the insurance didn't want to cover the damage. What would happen if he stoped sending his payments? Would they just pick it up and nothing more to pay? Or would he have to pay anyways?
2007-03-19 10:46:24 · 13 answers · asked by Laura T 1 in Cars & Transportation ➔ Insurance & Registration
Don't you wish... (sorry).
Ok.. worst case version:
1) They would notify you you missed payments, add on the late charges and eventually line it up for reposession.
2) Assuming they repo'd it (charging you for those costs), they would sell it for whatever they got and deduct that from what you owe.
3) They would send you a bill (which you would not pay)
4) THey would turn it over to a collection agency (which would tank your credit and your chances of getting a new loan for a new car)
5) Assuming you did not pay, they would take you to court (small claims for $5k or less - superior for anthing over) and win a judgement for what you owed plus, if your contract stipulates it, all court costs
6) With a judgement in hand (and assuming that you still have not paid it) they will then have 14 years to garnish your wages or your assets (did you buy another truck?).
...
When you crashed the old truck ..
If it was YOUR fault, try to deal with your insurance company. They have the obligation to make you whole. If you can show the truck was worth more you may be entitled to additonal funds (unless you signed off on it already)
If it was someone else's fault you are not obligated to accept THAT insurance company's offer.. you can sue the other driver for what is a realistic value of the car.
hope that helps.
.
2007-03-19 10:55:36 · answer #1 · answered by ca_surveyor 7 · 0⤊ 2⤋
He pays no matter what, and the insurance company not wanting to pay for damage, what kind of story is that? If he had a valid claim, then the insurance would cover it, period. If he stops payments, he is in default, the lender can repo the truck, auction it, apply what it sold for to the loan, and your friend gets to pay the balance, whether his truck is crashed or not, he signed the loan agreement, now it's his turn to be responsible and pay off the loan. He can ignore it, bill collectors will call and interest will accrue, he could have his wages garnished, income tax witheld, and a poor credit rating.
2007-03-19 12:05:21 · answer #2 · answered by fisherwoman 6 · 0⤊ 0⤋
Eventually the Repo man would come with a tow truck to repossess the vehicle. This would not me that money would no longer be owed. If the payments were not made this would most likely go into collections and start effecting the credit score of the individual. The best thing to do would be to call the bank who holds the loan and run this scenario by them. They would be able to tell you exactly how this situation would be handeled. Good luck! Just remember that a good credit score takes a long time to be built up but it can be ruined very easily.
2007-03-19 10:52:50 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If they stop paying the repo truck shows up some night and hauls it away. The bank (or whatever lender he has) may attempt to sell it as is. Your friend still owes the difference between what the lender gets and the loan payoff, with interest.
2007-03-19 10:56:18 · answer #4 · answered by SA Writer 6 · 0⤊ 0⤋
The car would be repossed, your friends credit would take a bad hit since the item would show as repossed (it's the third worse thing to have on your credit report). The company could sue for the remaining amount of money owed.
2007-03-19 10:54:06 · answer #5 · answered by Mariposa 7 · 0⤊ 0⤋
The Repo man will pay you a visit and steal your car from you legally. They will sneak up in the middle of the night and take the car or the will follow you around to find where you keep the car. And them they will take ti away from you. And not ojnly that but you would still be in Debt for the car. It will go against your credit and if you let it go to long you will have to file bankruptcy.
2007-03-19 10:54:28 · answer #6 · answered by Anonymous · 0⤊ 1⤋
greater suitable than probably your persons motor vehicle will, or has been reposessed. detention center time isn't likly yet credit would be ruined, yet that has already been well-known while the money stopped. economic restitution is had to get your pal out of hassle & lower back on the main superb song.
2016-10-19 02:44:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
A guy comes in a little white car and comes up to your door and rings the doorbell and when you dont answer it he tapes a paper to your door then leaves then the next morning your car is missing from your driveway.
2007-03-19 13:35:05 · answer #8 · answered by mbeast16 3 · 0⤊ 0⤋
it gets repo'd. he needs to contact the lien-holder, and explain the situation. why doesn't the insurance pay? was it his fault? if it get's repo'd. he gets charged for the initial fee, daily fee for holding it in the yard, and then he must pay whatever he owes (monthly payments). DO NOT do this.
2007-03-19 11:14:03 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Are you two really this stupid?
They will repo the vehicle, sell it at auction (for thousands less than he owes on it) then SUE him for the difference.
2007-03-19 16:54:33 · answer #10 · answered by Anonymous · 0⤊ 0⤋