If my car was impounded but I am unepmployed, will the car loan company sue me?

UPDATED: Oct 1, 2022

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If my car was impounded but I am unepmployed, will the car loan company sue me?

My car registration was expired due to outstanding car taxes exceeding $1,000. I have been unable to pay it and I could not put it on a payment plan. I recently was fired from my job and have been unable to pay my car insurance thus my policy was canceled. Yesterday an officer pulled me over for break light issues and then my car was towed. Will I be getting sued for not being able to pay my car note? Will I be going to jail for being unable to make any kind of payments?

Asked on January 28, 2019 under Business Law, Connecticut


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you can be sued if you don't pay the loan. The loan is a contract; you are contractually obligated to pay it regardless of what happens in your personal life of finances or to your car. If you breach the contract by not paying, you may be sued.
You can't go to jail for failing to pay a loan so long as you did not commit fraud (lie about) your ability to pay when you took the loan out.

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