Legal Question in Credit and Debt Law in Tennessee

Does nonpayment equal jail?

What are the laws regarding the process of ''repo-ing'' a car in Tennessee? If someone has not paid their payments, and the car is still in their possession, can they go to jail? I assumed that jail would not be an option and that the amount of money would be turned over to a collection's agency. Am I correct in this, or is it possible for someone to go to jail if they are in possession of an unpaid car? The payments haven't been paid in over a year...I don't know if this makes a difference.


Asked on 10/30/06, 3:52 pm

2 Answers from Attorneys
LAURA TEK LAW OFFICE OF LAURA TEK

Re: Does nonpayment equal jail?

Usually the only option a creditor has is to sue the debtor for the unpaid balance and get a judgment against them and then try to collect on that judgment by garnishing wages, etc. There is no such thing as "debtor's prison" anymore.

However, if the debtor is "fraudulently concealing" for example a car in order to avoid it being repossessed, then that creditor could take out a criminal warrant against the debtor because the debtor is knowingly and unlawfully hiding (concealing) the car from repossession. When a debtor does that, he is subject to jail time.

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Answered on 10/30/06, 4:09 pm
Robert Rexrode Gardiner & Associates

Re: Does nonpayment equal jail?

Nonpayment does NOT equal jail.

However, you do still owe the money.

The creditor's rights include: (1) repossession; (2) suing you (civilly) for the debt.

Some questions for you: was this an auto that you financed with their money; OR did you have it paid off then take a loan out on it? If the situation is the second one, did they keep the title or do you have it? If you have it, did they record their interest on the back of it?

Let me know!

Bob

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Answered on 10/30/06, 4:25 pm


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