Gaines, MI Bankruptcy Law Firms & Lawyers

As soon as you transferred interest in the vehicle to the finance company, you no longer had any ownership so you didn't have the responsibility for the vehicle. For example: if the car had been stolen or vandalized, you could not collect from the insurance company because it wasn't your property anymore. Now, you'd be liable if you were reckless with the vehicle. If you'd parked it in a tow-away zone or left the keys in it. You'd be liable not because you were a former owner but because you were reckless with the finance company's property.

If the debt is still owned by the bank, they may be able to prove their case, get a judgment, and seize your wages or property to the extent allowed by law. Since there are substantial exemptions (e.g., not more than 15% of wages in excess of minimum wage, $4000 in any bank account(s)), it is likely that a payment plan can be worked out in court. If the debt is in the hands of a debt buyer, it is unlikely that they can prove their case unless the debt is large and they get a witness from the original creditor.