If I was financing a car but have not paid the company in 2 months and have no insurance, can they report the car stolen?

What type of penalties and fines could i potentially be looking at?

Asked on May 23, 2012 under Bankruptcy Law, Arizona


Kevin Bessant / Law Office of Kevin Bessant & Associates

Answered 8 years ago | Contributor

The lien holder should not report the car as being stolen because you have a contractual right to possess the car. When you fail to pay the car note, and in some states provide insurance for the car, the lien holder has the right to legally repossess the car if you are not able to make the back payments. 

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.