As long as you continue to make payments on the car loan, the bank cannot repossess your car because it was not specifically named as collateral for the personal loan.
Credit card purchases.
Credit card debt is unsecured, which means the credit agreement does not name anything as collateral for the loan.
Can a creditor take my only car?
If you lose a court case and the judge decides you must pay the creditor, a judgment will be “entered” against you. When a judgment has been entered against you, creditors can take some of your income or your “assets” to pay back the money you owe. Assets are things you own, like a bank account, a car, or jewelry.
Can debt collectors take your personal property?
Collectors cannot threaten that you will go to jail or that they will make the debts public. They also cannot call your employer about your debt, unless it represents unpaid child support. Debt collectors may imply that they can garnish your wages or take other personal property to satisfy the debt.
What is exempt from debt collection?
The Fair Debt Collection Practices Act (FDCPA) is a national regulation that makes certain assets exempt from the credit collections process and protects the consumers from harassment by creditors and debt collectors. Regarding the exemptions, there are four categories of funds that are exempt from garnishment.