What happens if i default on my car loan
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If you had the car insured which you are compelled to do by law then the insurance would have covered the cost of the loan on the car that you wiped. show more If you had the car insured which you are compelled to do by law then the insurance would have covered the cost of the loan on the car that you wiped out.
If not, you have broken the law I think. This is not legal advice by the way. Next you have to pay the loan. If you don't the loan company can take out a court order against you. They can send a bailiff to collect property from you to the turn of $6,000 if you don't pay up. A bailiff comes to your residence, and delivers the court order, comes in and reposes property to sell for the loan company to get their money. They are entitled to this money plus interest. This applies in New South Wales Australia. If you are in the USA debt collection will be different.
You have signed a contract and must pay
up. You also have the new loan on the new car to pay. They can garnishee your wages. This would be a decision of the court. It depends on what the court decides as to which course is taken to repay the loan.
Do you want to end up in court and incur further costs or come to some agreement with your old loan company out of court. You could be declared bankrupt. On the other hand they could reposes your present car if you do not have sufficient assets to cover the old debt of $6,000 other than the new car.
You need to think this through carefully. I would pay the debt. You don't have any other option. You don't appear to have any insurance. I would also seek proper legal advice and organise your finances properly in future. The money spent on legal advice will be well worth it.
I take no responsibility at law for this advice as I am not a lawyer. This is why am telling you to seek legal advice from a lawyer.
Bella Rose · 7 years agoSource: au.answers.yahoo.com