Am I still obligated to make payment on a vehicle that I already own?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I still obligated to make payment on a vehicle that I already own?
My car loan was transfer to another finance company in which the finance company fail to update the lienholder information. My car was totaled and the insurance held the check, until they could locate the lien holder which went out of business. The insurance company told me what I needed to do in order to have the funds release to make repair to my vehicle. I went to purchased a surety bond and to obtain a bonded title.
Asked on June 24, 2012 under Bankruptcy Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The issue that I see is do you owe any money on this vehicle and if so, are you its registered owner? If you still owe money on the vehicle that was totaled, then you contractually need to pay off the balance of the loan regardless if you are its registered owner in order to get a full release on the loan.
If the loan is paid in full, then you get to keep the insurance settlement money for your totaled car.
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.