When you take out a car loan, you agree to repay the loan in monthly installments. If you default on your loan, the lender can repossess your car. However, this does not mean that you are relieved of your obligation to repay the loan.
Even after your car is repossessed, you will still owe the lender the remaining balance on your loan. The lender can take steps to collect this debt, such as garnishing your wages or seizing your other property.
In some cases, you may be able to negotiate a settlement with the lender. This may involve paying a reduced amount of the debt or making payments over a longer period of time. However, it is important to remember that you are not obligated to settle your debt. If you do not reach a settlement, the lender can take legal action to collect the debt.
If you are facing car repossession, it is important to talk to an attorney to learn about your rights and options.
