Legal Question in Credit and Debt Law in Georgia

I bought a car that i financed through a credit union, and somehow i ended up with the title of the vehicle without a lien on it. after one year i sold the car, but i am still paying on the loan. do i need to continue paying on it, or i can default on the loan, or what are my options ?

Asked on 10/24/12, 9:23 am

2 Answers from Attorneys

Glen Ashman Ashman Law Office

I'd want to see all the paperwork. Regardless of the lien, if you stop paying they can sue you, ruin your credit, garnishee your pay and bank account and seize your assets. Depending on how the lien wasn't recorded, you may have other issues.

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Answered on 10/24/12, 10:35 am

What do you think? You get a free car? No. Obviously, someone screwed up; the credit union never should have released the title.

As noted by Attorney Ashman, regardless of the fact that you no longer have the car, it only means that the credit union is unsecured. That does not mean that they cannot sue on the note evidencing the debt. The question is why do you want to stop paying? If you can afford to do so, you need to keep paying. If you lost your job or have other financial issues, that is a different question. In that case, you could stop paying but you would have to accept the consequences. Your credit will take a nosedive. Eventually, the credit union will sue and they will be mightily irritated to discover that you sold the car. If the credit union gets a judgment against you, then know that Georgia, like most states allows wage garnishment. The creditor can also levy your bank account or seize any other valuable assets that are owned free and clear. Depending on how much you owe and what you own, it might be a better option to file bankruptcy.

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Answered on 10/24/12, 11:06 pm

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