Ask Bill your personal finance question

Default on auto loan and collections advice

I have an auto loan, it was my girlfriends car but she passed away. Am I responsible?

I have an auto loan, that I cannot pay, it was my girlfriends car but she passed away, and i am alone raising our two children. I Have to pay the car company so that i don't go to jail, they have said that they will not accept anything less that paid in full, and that is $12,000 please help me i will make the monthly payments if i can get a loan. My name is Francisco G.

Read full question
Bill's Answer
4.2
/5.0
(5 Votes)

Bills.com | Find Learn Save

First, I think you may have some erroneous impressions about the car note. I don't understand why you have to pay for the car unless you signed the note as a guarantor (or some other capacity) at the beginning. There is a good chance that you do not need to pay the auto loan, since it is not your loan... again unless you cosigned or guaranteed that loan.

Even so, going to jail for non-payment is not possible without some very unusual circumstances. I hope the auto finance company has not threatened you with that kind of action, because it would be illegal. You will need to seek an attorney's advice about this, but rest assured non-payment of a debt is not a criminal offense in America.

You will also need to see an attorney concerning the title of the car. It would be a terrible outcome for you to pay the note down and then to find out the car really doesn't belong to you. Unless your girlfriend, (may she rest in peace) wrote a will leaving the car to you, you may not be acquiring good title as you make payments. An attorney practicing probate and other estate matters will be able to help you with that as well. If you don't want the vehicle and you find out that you are not personally liable on the note, you can turn the car in to the creditor and that will be the end of it. Do this ONLY after double checking with your attorney.

Good luck, my friend.

If you would like more information, please visit our credit resource page.

I hope this information helps you to Find, Learn, and Save!

Best,

Bill

bills.com

Get Debt Help!
4.2
/5.0
(5 Votes)

People also like to Read

Mark Cappel

Debt Relief | A debt relief loan can actually reduce your debt. Discover your loan options and where you can find a loan...... Read more >>

Betsalel Cohen

Unsecured Personal Loans | Unsecured personal loans are offered by big lenders and many sites online. If you have bad credit,... Read more >>

Daniel Cohen

DTI: debt-to-income ratio | Your debt-to-income ratio affects whether you will be approved for a loan or not. Make sure that ... Read more >>

Betsalel Cohen

Low Interest Personal Loans | Personal loans are an alternative to credit cards. You will need good credit and stable income,... Read more >>

34 Comments

Recent Best
1500 characters remaining
  • BA
    Sep, 2010
    Bill
    You message is unclear to me. The law office representing the creditor states it will not garnish your wages unless you agree to a payment plan? Or do you mean the law office people are telling you that they will garnish your wages if you do not agree to a payment plan? I think what you are really asking is if a payment plan you negotiate with the creditor is smarter than waiting for a wage garnishment. If that is your question, my answer is yes. Negotiate a payment plan.
    0 Votes

  • 35x35
    Sep, 2010
    Robin
    I live in Arizona and currently have a title loan in default. The vehicle has been repossessed by the lein holder. The law office is not calling stating that garnishes of wages has been filed unless I start a payment plan. Please advise on procedure.
    0 Votes

  • BA
    Sep, 2010
    Bill
    Yes, the fact you are making an incomplete payment is showing positive intent, but on a secured debt (such as a mortgage or vehicle loan) an incomplete payment is almost as bad as making no payment at all. Review your loan contract for your exact terms and conditions. Your best course of action is to continue to communicate your intentions to the creditor.
    0 Votes

  • 35x35
    Sep, 2010
    Jessyca
    I brought a car in November of 2005 and have been paying my loan ever since. I lost my job once before and it was taken by the bank. I borrowed some money and got it back. I have been laid off recently and have managed to stay on top of my account; however last month i couldnt pay it because i moved. I did send them two payment but still owed them $135. They are threatening to take my car even though i am making payments. The last time they took my car i didnt make a payment for 4 months and now that i am scrapping up any money i can to pay them they still want to take my car. What can i do? Can they still take my car even though i am making payments?
    2 Votes

  • BA
    Aug, 2010
    Bill
    The answer to your question is, "unlikely." Please see the Bills.com resource Am I Liable for My Deceased Spouse's Debts? to learn more about your family's liability for the decedent's debts. Please ask any follow-up questions you may have on that page.
    0 Votes

loading...