If I am defaulting on a loan for my car, can the company repossess my husband’s car as well?

I can’t pay my car payment. I asked them to repo but they are threatening to take my husband’s $car, can they do that ( the loan in question is on my car). Will they take his car? We are joint on the default loan.

Asked on March 16, 2011 under Bankruptcy Law, Idaho

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether the car is really your car or your husband's car in terms of who uses it is of no consequence to the lender. The issue here is whether you are both on the loan.  If it appears you are both on the loan, then that car in question can be repossessed.  If the lender refuses to accept a voluntary repossession, then file a complaint with the entity who regulates this lender and see if that route can help you.  The lender cannot simply take your husband's vehicle, especially if a) it is not part of the loan in any way and b) he didn't use his vehicle as security for your car (think of like a promissory note or title loan).  The only way I can see this happening is if the lender takes you to court, wins a lawsuit, you fail to pay, the repossession and ultimate re-sale of the motor vehicle doesn't satisfy what it is you owe on the motor vehicle and the lender then goes back to court to obtain a deficiency judgment to then try to attach a lien to your husband's motor vehicle (pre-supposing no other lien exists on the car).


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