What happens if a car cannot be found during a repossession?

If the security for a loan cannot be located, or it has been destroyed, or it has not been maintained well or for any reason the property is not sufficient to pay off the debt, the lender can use all other legal means to collect the debt. That generally means collection agencies, court orders allowing the seizure of other property or earnings, etc If the borrower can be found to have intentionally been involved with the loss to, or of, the security, (or interfering with it's recovery) other serious even criminal type actions can ensue Consider that your probably not going to outsmart the system. The idea that the borrower could do something to get rid or make the security impossible to find is not new or previously something not considered (or even tried by many).

The law has made sure the repercussions are to protect the lender and the entire business of lending. Clearly, if that was (or there was) a way to avoid paying back a loan (something no one really likes to do), nobody would give loans!

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