If my original auto loan was for 6 years and my car gets totaled. Do I have the entirety of the contract to repay the loan?
1 attorney answer
The answer to your question really depends on the terms of your financing agreement. Most agreements require that you maintain regular periodic payments, usually monthly. You can't "pay ahead" and avoid the requirement that you make regular monthly payments. Paying ahead just helps reduce your principal balance. Also, most agreements have an acceleration clause, meaning that if you go into default (i.e. missing a scheduled payment), the entire balance can be accelerated as immediately due.
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