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Can the debt collectors snatch away your only car for a debt?

The debt collectors can't repossess your car for non-repayment of a debt. They will be able to take away your car only when it has been used as collateral against the loan.


Allied Interstate has been sending me letters for the last few weeks. They keep calling and sending letters to me every week. They call me regarding a debt which is 3 years old. I have no job right now. Actually, I am not working for the last 2 years. I was laid off in July 2009 and haven't been able to secure a job till now. This is why it is not possible for me to pay off this debt. 

I have not sent a validation letter to the collection agency since the debt is valid. But I don't know how to pay off this debt either. My only asset is a car. Can the collectors snatch away my car? I have not yet received any unemployment benefits. What can I do to stop the collectors from calling me everyday?  


It is strange to hear that you have been unemployed since the last 2 years. The country is facing unemployment problems at present. There is no doubt about it. But it is extremely hard to believe that you haven't been able to secure a job during this time. The collectors will never believe that you have been living for the last 730 days without any income.

Usually, no one can live without any income for 2 years. This is why it will be very difficult for the collectors to believe you. My debt advice for you is to start looking for a job now. You must not be selective about jobs at the moment. Your main focus should be to secure a job and earn money. 

You will not get rid of the collection calls until the debts are paid off. You have taken out a loan and promised to repay it. You have broken the promise due to financial hardships.  The debt collectors are just trying to collect the money you have promised to pay. They are correct from their point of view. 

The debt collectors will not able to snatch your car for the unpaid debt. However, they can repossess your car under the following cases:

You used the loan to buy your car
You have pledged the car as collateral against the loan
You can stop the debt collectors from calling you repeatedly by sending a letter to them. Write in the letter that you wish the collectors to cease communication with you. Under the federal laws, the collectors are required to not call you after receiving the letter. However, the collectors are allowed to contact you once after getting the letter. They can do so to notify you about the steps being taken against you.


The other ways to stop the debt collectors from calling you are as follows:

Submit the bankruptcy petition to the court

Hire an attorney to represent you. The collectors will contact your attorney regarding the case.

The final option will be to stop answering the calls of the debt collectors. You can also stop reading the mails sent by the collectors. HoweverArticle Search, it is not a wise idea to do it. You should read the mails to know whether or not the collectors have decided to file a lawsuit against you. 

Source: Free Articles from


He is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like 'Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'.

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