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Can the loan company take my vehicles if I have disability insurance?

Can the loan company take my vehicles if I have disability insurance?

Q: Can a loan company sue you if you're on disability?

Yes, a loan company can sue you even if you are on disability. However, if you are unable to make payments due to your disability, it's important to communicate this with the lender. They may offer options such as loan modification or deferment. Consulting a legal professional can help you understand your rights and options.

Q: Can a loan company garnish my disability check?

In most cases, a loan company cannot garnish your disability check. Federal law protects Social Security disability benefits from garnishment for most debts. However, there are exceptions, such as for child support or federal tax debts. It's advisable to seek legal counsel to understand your specific situation.

Full question:

I HAVE A LOAN, I TOOK OUT DISABILITY INSURANCE ON THE LOAN, I BECAME DISABLED APPLIED FOR THE LOAN AND THE INSURANCE COMPANY WAS MAKING THE PAYMENTS. I RECEIVED A PHONE CALL FROM THE LOAN COMPANY WANTING TO KNOW WHY I WASN'T MAKING THE PAYMENTS FOR OVER A YEAR NOW, AND WHY I DIDN'T TAKE THERE OFFER TO SETTLE FOR A LESSER AMOUNT. I THOUGHT IT WAS TAKEN CARE OF BECAUSE I RECEIVED A FORM FOR ME TO TAKE TO MY DOCTOR AND SIGN. I DID AND RECEIVED A LETTER FROM THE COMPANY THAT PAYMENT WERE BEING MADE, SO I GAVE IT NO MORE THOUGHT, I AM STILL DISABLED AND WILL NEVER BE ABLE TO WORK AGAIN. NOW THEY HAVE THREATENED TO TAKE MY ASSETS IF I DON'T PAY THE WHOLE AMOUNT. MY QUESTION; I HAVE ONLY TWO ASSETS AND 1990 CHEVY VAN AND A 1996 RV THAT I LIVE IN, CAN THEY TAKE THESE TITLED VEHICLES? ONE VEHICLE IS IN MINE AND MY DAUGHTERS NAME AND THE VAN IS IN JUST MINE...

Category: Judgments
Date: 04/07/2025
State: Washington

Answer:

According to Washington state law (RCW 6.15.010), certain personal property is exempt from being taken by creditors. This includes:

One motor vehicle used for personal transportation, valued up to two thousand five hundred dollars.
For community property, two motor vehicles used for personal transportation, valued up to five thousand dollars in total.

Since you have a 1990 Chevy van and a 1996 RV, the loan company may only take them if their combined value exceeds the exemption limits. If the van is solely in your name and its value is less than two thousand five hundred dollars, it may be protected from seizure. However, if the RV is in both your name and your daughter's name, it may be subject to different rules regarding community property.

It’s advisable to consult with a legal professional to discuss your specific situation and ensure your rights are protected.

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

What is a disabled loan?

A disabled loan typically refers to a loan that includes provisions for disability insurance. This insurance can cover loan payments if the borrower becomes disabled and is unable to work. It provides financial protection by ensuring that the loan remains in good standing during the borrower's period of disability.

Can a loan company take my disability check?

Generally, a loan company cannot take your disability check to satisfy a loan debt. Disability benefits are often protected from garnishment under federal law. However, if you owe money for certain obligations, like child support or taxes, those may be exceptions. It's best to consult a legal professional for advice specific to your situation.

What is the 5 year rule for disability?

The 5-year rule for disability often refers to the requirement that individuals must have worked for a certain period before becoming eligible for Social Security Disability Insurance (SSDI). Specifically, you must have earned enough work credits over a 5-year period to qualify for benefits. This rule ensures that only those who have contributed to the system can receive assistance.

How does disability insurance work on a loan?

Disability insurance on a loan ensures that your loan payments are covered if you become disabled and cannot work. When you take out a loan, you can opt for this insurance, which will pay your monthly loan payments directly to the lender during your disability period. This helps prevent defaulting on the loan due to loss of income.