Am I still obligated to make payment on a vehicle that I already own?
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Am I still obligated to make payment on a vehicle that I already own?
My car loan was transfer to another finance company in which the finance company fail to update the lienholder information. My car was totaled and the insurance held the check, until they could locate the lien holder which went out of business. The insurance company told me what I needed to do in order to have the funds release to make repair to my vehicle. I went to purchased a surety bond and to obtain a bonded title.
Asked on June 24, 2012 under Bankruptcy Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The issue that I see is do you owe any money on this vehicle and if so, are you its registered owner? If you still owe money on the vehicle that was totaled, then you contractually need to pay off the balance of the loan regardless if you are its registered owner in order to get a full release on the loan.
If the loan is paid in full, then you get to keep the insurance settlement money for your totaled car.
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