Can I go to jail for not paying my car loan?

Full question:

I bought a used car then lost my job so, I never made a payment except for the down payment. I am behind 8 months in payments. I was told there was a warrant out for me. Can I go to jail for not making the payments? Can I voluntarily take the car back to the car lot? If I take the car back, will I be out of trouble?

Answer:

Generally, you cannot be jailed just for failing to pay a debt. However, the terms of your contract and the dealer's policies will determine if you can return the car. Inability to pay does not automatically allow you to rescind a contract. If you return the car, it may help resolve some issues, but it does not guarantee you will be free from trouble.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

If you lose your job and can't pay your car, first communicate with your lender. They may offer options like deferment or a payment plan. Consider returning the car to the dealer, but check your contract for any penalties. Additionally, explore local resources for financial assistance or job placement services.

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