Unpaid Car Loan

What is the name of your state (only U.S. law)? MI
In 1996 I purchased a car. Several months later my life fell apart, my income shrank dramatically and I defaulted on the payments. I moved (to IN), did not file bankruptcy and never heard from the bank holding the financing for the car. My income situation has been below poverty level since, therefore I never tried to resume making payments (moved back to MI almost 4 years ago). The car has been driven all along, it is licensed, and insured. Recently I had to retire the car (17 years old, 250K miles) because it was unsafe. It needs to be salvaged and I want to stop paying insurance on it without being penalized, and of course I do not have the title. Not sure how to resolve this issue, if I'm still liable for the contract amount after all these years. I've carried a tremendous amount stress over this issue and it's time to heal this situation. Thank you.

if you cancel the registration, you do not have to maintain insurance on the vehicle.


as to the debt, I believe it would be beyond any statute of limitations so you would be able to claim that as a defense if sued. You are technically still liable for the debt. It's just that they cannot use the courts to obtain a judgment for the debt.

unless of course you have already been sued and there is a judgement. They last considerably longer.

have you checked your credit report lately?

so, what do you want to do? Just get rid of the car? Pay the debt?