Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
Simply because the car has been repossessed doesn't mean that money on the loan still isn't owed. They will end up selling the auto at auction and there will likely be a deficiency. You can continue making payments but keep good records so when the time comes you will have a complete record. Or if you stop payments then they will pursue a deficiency action which usually begins by normal collection practices and then may lead to legal action.
Answer Applies to: Massachusetts
Ethan Myers Law Firm PLLC | Ethan Myers
No. please don't make any more payments unless there is some type of agreement worked out in which the car is being returned. What you should be aware of however is that once the car is resold, assuming that it is resold, and I believe there is a duty to mitigate damages. (try to get as much of the money out of the car as they can by selling it and applying that amount to the amount you owed when they took it) the amount still owed on the car after being sold to someone else, that amount is your responsibility. So while you do not have to keep making payments nor should you. you might have an unsecured amount of money that you owe.
Answer Applies to: Texas
Lehn Law, PA | Joseph W. Lehn
Once a vehicle is repossessed the creditor usually sells the vehicle at auction and sues the debtor for the difference of what is oed and what the vehicle sells for. Once that is done, the creditor can ask for a deficiency judgment against the debtor. This judgment can be enforced by wage garnishment or other means allowable by law. Bankruptcy stops all collection efforts and primarily wipes out the deficiency balance.
Answer Applies to: Florida