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Can Finance Company take Legal Action?

Baltimore, MD |

I used my car as security on a personal loan with a finance company in which I'm delinquent. I'm current on my car payment and I still have 2 more years left on my car loan so the credit union where I financed the car is in the first position. Can the finance company go after the car even though it's still owned by the credit union?

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Filed under: Credit Car loan
Attorney answers 1

Posted

Yes, it can. Whether it will do so, however, is more uncertain, particularly if the finance company knows that it won't end up receiving anything if the car is sold. Sometimes they intentionally go after collateral that they know won't result in their getting anything just to show how "tough" they are.

It is more likely that the finance company would simply sue you, get a judgment, and begin garnishing wages and attaching bank accounts.

Brett Weiss
brett@BankruptcyLawMaryland.com
www.BankruptcyLawMaryland.com

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The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation.
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