Overhaulin'

what happens if you scrap a car that you have a loan with a title company..in indiana ...maybe ky?

my wifes stupid nephew did this..i was told that ..defrauding a secured crediter was a felony..

Public Comments

1. you still have to pay the loan
2. You cant sell it legally. And if you scrap it, you still have to pay off the loan. If you dont pay off the loan and they try to repo and there is no car, they will sue you for the whole loan value and take it out of you check.
3. you still owe the money
4. you are now paying the loan on a compacted box of steal and plastic. Use the money you sell it for scrap to help pay the loan other than that it sounds like it sucks for you. (why would you compact/scrap it if your not done paying it off is what makes me laugh)
5. Doesn't matter what state you are in, you have a contract with a company to pay off a loan. No matter what happens to the car, YOU owe the money. Sell it, abandon it, give it away.. (well, actually you prob. can not sell it since the lender still owns title).. but the bottom line is you will still need to make the payments or you will find your credit tanked and your paycheck garnished. .
6. Legit. scrap yards won't even take your car without a title. The loan is still in effect and you will still owe the money.