Legal Question in Credit and Debt Law in New Jersey

Re: Voluntary Reposession

If you voluntarily surrender your car, you simply contact the lender and tell them that is what you want to do. If it is a lease take it back to the dealer where you got it. You should keep in mind that with any repossession, voluntary or otherwise you usually still owe money to the lender. If, for example, you owe more than the current market value of the car you will remain responsible for the difference between the amount you owe and the liquidation value. Sometimes this is substatntial and the lender can sue you for this or garnish your wages to recover it. Unless it's a lease or you also plan on filing bankruptcy on all your debts which often is a good option -a voluntary possession is usually not any better then just not paying and letting the lender repossess it themselves - that is if you truly cannot afford the payments and have a legitimate reason as to why you can't.