What will my lender do legally if my car is totaled.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What will my lender do legally if my car is totaled.

I am in the military and I left my car with one of my friends and told him not to drive it. He did it anyway fell asleep at the wheel and totaled my car. My car is financed and my insurance which is a liability will not cover the damages. What should I do? As far as will the bank make me pay all the money owed or do I just continue to make payments

Asked on July 20, 2017 under Accident Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

As a general matter, your obligation is to continue to pay the financing as agreed, so as long as you continue to make the regular payments, the bank should have no cause to complain or take action. Generally, it would only be if you default (fail to make payments when due) that they could take legal or collections action. That said, the financing or loan agreements you signed are a contract; as with any other contract, it's specific terms are important. Review this agreement to see what, if anything, it says about the situation of a car being totalled.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption