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  1. #1
    Join Date
    Jan 2008
    Posts
    14

    Default Default On Loan, Legal Ramifications Of Stripping Car

    Obviously I'm going to be attacked for what I'm proposing, but since this is a legal help website, I need to know the legal ramifications.

    I have a 2003 Acura RSX type S that I bought 08/2006, in North Carolina. The car has a NC title and registration. Right after that, I got out of the Marines and moved back to California, where I'm from.

    Long story short, I wasn't making 35,000 a year anymore, I defaulted on the loan and owe probably 19,000 on a car that's worth 11-12,000 (13.25% interest adds up quickly).

    They haven't repo'ed the car yet. I haven't received any communication from them in months, since I got the default letter. They're not persuing this very hard. The bank is USAA Federal Credit Union by the way.

    My question is: What are the legal ramifications of stripping the car? The engine and transmission are worth $4000 by themselves, would go very nicely into an Integra that I have. Other parts could be sold, leaving a rolling chassis for the bank to come repossess.

    Before anybody asks, my credit is already shot so I have nothing riding on this credit wise. I don't think my score can go much lower than 425-450 with it mattering.

    I've searched for awhile now, and can't find a precedent for this. Thanks for any professional advice anybody has to offer.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    since you don;t care about your credit, how do you feel about jail?

    Don't do it. It is not only civilly wrong but a case could be made for criminal action.

    On top of that they will sue you for the debt and the judgement will follow you for as long as allowed by law.

  3. #3
    Join Date
    Jan 2008
    Posts
    14

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    That's what I suspected, I was considering this in conjunction with Chapter 7 to discharge any amount owed. My income is less than 20,000 a year but I have 40,000 in debt from when I was in the Marines, so I think I qualify.

    I was just worried about legal ramifications. Thanks.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    I am not sure what criminal charge could be made, although the lender will probably work hard to find one.

    But I am quite confident that a bankruptcy court, faced with your trying to discharge the debt from a vehicle you stripped, would determine that the debt is not dischargeable due to your bad faith conduct.

  5. #5
    Join Date
    Jan 2008
    Posts
    14

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    Quote Quoting aaron
    View Post
    I am not sure what criminal charge could be made, although the lender will probably work hard to find one.

    But I am quite confident that a bankruptcy court, faced with your trying to discharge the debt from a vehicle you stripped, would determine that the debt is not dischargeable due to your bad faith conduct.
    Ok thanks. I guess I'm off to the bankruptcy forum.

  6. #6
    Join Date
    Jan 2008
    Posts
    14

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    Oh, I've heard cases of people filing bankruptcy, but nobody ever coming to get their car. What happens then?

  7. #7
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    It does happen. They end up with a car they can't sell, as they don't hold clear title. I doubt, though, that it would happen in your case due to the value of the vehicle.

  8. #8
    Join Date
    Jan 2008
    Posts
    14

    Default Re: Default On Loan, Legal Ramifications Of Stripping Car

    Yeah I saw some dumb guy trying to sell a 97 Grand Prix for parts on eBay. He filed bankrupcty in 2000 and nobody ever came to get the car. I didn't stick around for the result of the auction.

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