Q: What happens if I stop paying for my car that was total loss 2 years ago and I repaired it, can the bank sue me?
I bought a car for the first time in this country and had a accident where my car was total loss, my loan was for like $12,000 and the insurance only give me $7,000 at that time I didn't know what to do and decided to fix it for that amount of money not knowing what car fox was and the total loss was going to be on records, so now I go to change the car to the dealer and car fox shows the total loss, they will only give me $2000 and my balance is almost $11000, I am thinking to stop paying but, not sure if they can sue me, I am new in the country, please advise me if you can, I don't want to make another mistake, thank you.
A: Yes, if you stop paying they can sue you for the amount you still owe them. It seems strange that the insurance company paid you without getting a release from the dealer (or loan company; whoever had the lien on the car).
A: I agree with Mr. Thorgaard--so you need to contact the insurance you had, find out if they paid any money on the loan, if they did ask for copies of the paperwork. However, even if they paid some you would still owe money so you need to keep paying--the bank lends you money on a car you have decided is worth the money. They don't provide insurance--if something happens to the car, you still owe them the money. You don't pay, they can sue you. If it's not too expensive to keep your car running you are best trying to drive it until it is not worth it to fix it, because you know you will not get much money for it.
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