I Don’t Know Where the Car is That My Car Loan is On. – Jose

“Dear Steve,

hey how u doing, heres my situation..

in jan 2007 i asked the bank for a loan to buy a car, now because i didnt have credit, my uncle signed as cosignor, anyways , i paid the car for a year and 3 months, but then i couldnt keep paying, so my uncle told me that if i gave him the car he would keep paying, now during this time i started working as a truck driver and was never home, so i didnt really knew what happened with this deal… on friday i got a letter from an attorney saying that i needed to give the car back, which i dont have , my uncle moved to mexico 4 yrs ago and i dont know what happen to the car, now im in a weird situation because this..

im a veteran , and im using my post 911 gi bill to go to school, so all my income comes from this and pell grants, im unemployed… and i been reading about this.. so i found out that Veterans Affairs money cant be touched and other thing i found out is that texas dont allow wage garnishments, so im an insolvent person.. my only other asset is a car i bought last year at 2500 dlls, but other than that thats it i dont own anything, now the money in my bank account is all from the post 911 gi bill and i can prove this, so my question is this… if the attorney happens to sue and win, when they come to get the car well i dont have it, can they throw me to jail???

i signed a security agreement and i really dont know where the car is,, if i knew i would have returned myself… now i havent talked to this lawyer but im willing to pay lets say 150 dlls a month from the money i get from the gi bill till i get out school and then when i get a job i can pay the rest.. i been thinking a lso of bankruptcy but i dont know.. some people has told me just to dont do anything based in the fact that well i dont have the car and i really dont know where this car at, my money comes from the VA so if im correct my money is secured plus i dont have any other income, plus my only asset is my 2500 dlls car, which i use primarily to go to school.. what do u think?? any advice will be appreciated.. it isnt that i want to do this, is just that i made a lot of bad decisions, and theyre hard to fix.. what im most worried is when they ask for the car and im like well i dont know, when i was liable for it, like i said my uncle was the cosignor so i guess hes liable too, but im more afraid about jail type of issues.. i know that there isnt debt prisions anymore but , the car was collaterall that i cant make appear, so im just a lil bit worried.. thanxs for ur time

See also  My Car Was Repossessed. Should I Just Let Them Sell It? - Astrid

if i can get throw in jail, for failing to present a collateral while i signed a security agrement when i honestly dont know where it is??
if they can take my post 911 gi bill money??
if they can take my car , which is worth around 2000 dlls??


Dear Jose,

You are not going to jail. But they will probably sue you and get a judgment against you for the full amount due, plus some.

I hate to even imagine what happened to the car or where it is now. Maybe Mexico? But that doesn’t really matter since getting the car back at this point doesn’t help you to afford it.

While your current income may not be garnished, it won’t always be that way so now or in the future you’ll have to deal with this. If you decided to go bankrupt it would end the debt but before you do that you’d need for the lender to give you the big bill due for the car. In the meantime it does not hurt for you to click here to find a local bankruptcy attorney and talk over the situation with them.

Have you tried to contact your Uncle and ask him where the car is?

Please update me on your progress by Damon Day - Pro Debt Coach

Leave a Comment