Do I have to pay the finance company for a loan on a car that was stolen and totalled?

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Do I have to pay the finance company for a loan on a car that was stolen and totalled?

My car was stolen, totalled, impounded, recovered and stolen again. I don’t know where my car is now, yet the finance company wants me to still pay the loan off. It states in my contract that I pay $58 a month for theft insurance and in the contract it has a different vehicle for collaterial but they have the title to the car that is stolen.

Asked on July 1, 2012 under Bankruptcy Law, Alabama

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

So long as you have not paid off the loan for the vehicle that you were making payments on which was stolen and then totalled, you are contractually obligated to pay off the lender with respect to your vehicle the amount owed.

Hopefully you had insurance in place for the theft of the car which will allow you to pay off the loan in full on this vehicle.


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