Legal Question in Credit and Debt Law in Texas

Repurcussion for not paying car loan

I had a new car financed which I then let my girlfriend drive, as her own. She was in an auto accident which was not her fault. The car went into the shop and insurance claim was filed. Insurance check rec'd girlfriend claims she 'lost it' (was only endorsed to her), but insurance co had signature matching hers and the check cashed. Now ther is no money to pay off the body shop for their work, they filed a mechanic's lien on the car and kept it. The bank wants the money for payment on the outstanding auto loan. I do not have the money to pay for a car I do not have in my posession. To what extent can the bank attempt the debt collection? I have agreed to pay $50 a month, but they keep harrassing me, can they submit a court claim and if so, what would be the outcome? Would this constitute a criminal charge, or requirement to pay more than I had offered?


Asked on 3/09/06, 2:54 pm

1 Answer from Attorneys
TC Langford Langford Law Office

Re: Repurcussion for not paying car loan

You are obligated on the car loan. You also need to make a deal to pay off the car repair so you can get the car back.

The police may not take a criminal charge against the girlfriend since the check was made payable only to (hopefully your EX) girlfriend. You should at least sue her however.

A very expensive lesson in life.

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Answered on 3/10/06, 7:36 am


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