If I can’t pay a car loan back and the lender hasto repossess my truck, will the loan be taken care of or will I still owe them money?

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If I can’t pay a car loan back and the lender hasto repossess my truck, will the loan be taken care of or will I still owe them money?

I thought that I could maybe sell the truck and use the money to pay off the loan but I gave them the title when I took out the loan. Would it be legal for me to file for a lost title so I could sell the truck?

Asked on February 9, 2012 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you have had your vehicle that you are paying on time repossessed by the lender, the vehicle will be auctioned off and the net amount received at the auction less auction costs, storage fees and repossession fees will be applied as a credit as to the amount of the loan you still owe.

It would be improper for you to file for lost title for you to sell the vehicle you are writing about since you know that the lender is holding the registration to it.


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