Legal Question in Credit and Debt Law in North Carolina

Your husband cannot get rid of the Ford Focus because he cannot get clear title to the car. He has not paid for it. And doing a repo is stupid. It does not negate the responsibility to pay for the car. Even if the car is repo'd your husband (and you if you also signed the car note) is liable for the balance owed on the car plus collection/sale costs minus the net proceeds from any sale of the car.

Its not a matter of getting into trouble unless your husband tries to sell or dispose of the car. Its a crime to dispose of a secured asset with the purpose of defrauding the creditor. Unless your husband gets it in writing that the lender does not want the car then the next thing would be to get them to release the lien on the title so that the car can be transferred. Someone may be willing to pay something for the car even if it is salvaged.

I would strongly recommend that you do this the right way if you want to avoid any future consequences. I suggest that your husband start saving up funds now. I don't know what is owed on the Focus but when your husband has approximately 50% of the loan balance saved, he needs to call the bank and offer the 50% and make any payment contingent on getting the lien released and receiving the title. All must be in writing before a dime is paid to the bank. The bank or any other creditor who owns the debt will take that deal. Then once clear title is received you can sell the car to another buyer or for salvage and at least recoup some of the funds.

If you need assistance in resolving the debt please contact me at [email protected] or consult with a local consumer/debt resolution attorney in your area.