I had a car with a title loan and the engine blew. I haven't paid In 4 months and even told the company to come and get the car. After weeks of my in-laws whom I live with demanding I got it out of there I scrapped it. I didn't even think about the fact the title loan company has a lien on the title and now I'm worried. I know either way I owe the money but can I be arrested for this? I had to sign a paper from the scrap company saying I scrapped the car so I'm thinking now when that paper gets down state the lein will pop up and I'll be ib hot water. Can anyone give me more info? I'm very, very scared right now as I've heard it may be considered theft. Thanks for any help.
Divorce / Separation Lawyer
As you mentioned, you know you owe the money. Just pay the loan and you will be fine.
A title lien on a junk car is worth exactly as much as the junk car. I'm really surprised that the scrapyard took the vehicle. They're supposed to do title searches beforehand. However, for you, the bottom line is that you still owe the money and you haven't stolen anything. Just keep paying on schedule and you'll be just fine. One day, you'll even get a title release form in the mail from the lender. You can frame it as a memento or just stuff it in a drawer. Good luck.
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Intellectual Property Law Attorney
No, you have not "stolen" the car, you have sold it. I am also surprised the scrapyard took it without a title, which presumably the loan company currently has in their possession. The lien is now worthless as is the title, but your credit is of value. Keep paying if you can. In fact, pay the balance if you can to clear the issue and avoid interest. Title loans are among the highest of interest rates.
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