When a person is jailed and has a vehicle that was purchased on finance, several potential scenarios can occur depending on the specific circumstances:
- Continue Payments: If the person has the financial means to continue making the monthly payments on the vehicle, they can choose to continue doing so while incarcerated. Typically, being jailed does not automatically absolve the individual of their financial obligations, including the repayment of loans or financing agreements.
- Temporary Suspension: In some cases, the person may contact the finance company or lender and request a temporary suspension or deferment of payments while they are in jail. This option is not guaranteed and would depend on the terms of the financing agreement and the policies of the lender. It’s essential to contact the lender as soon as possible to discuss the situation and explore available options.
- Repossession: If the individual fails to make the required payments and does not communicate with the lender, the lender may initiate repossession proceedings. The vehicle could be repossessed, sold, and the proceeds used to satisfy the outstanding debt.
- Transfer or Sale: Another option, depending on the circumstances and the lender’s agreement, may be to transfer or sell the vehicle while incarcerated. This would require the cooperation of the lender and potentially the involvement of a trusted representative or power of attorney.
It’s important for individuals facing prison and who have financed vehicles to contact the lender or finance company as soon as possible to discuss their situation and explore the available options. Lenders may have specific procedures in place for such cases and can provide guidance based on their policies and the terms of the financing agreement.