Legal Question in Credit and Debt Law in Maine

Re: Voluntary Repo

A voluntary repossession is usually better for you than if you force the Bank to seek legal process to obtain the vehicle because your loan agreement allows the Bank to add to the balance you owe the costs of repossessing the car. Also, if the car is clean and in good repair it may bring more money at sale and thus decrease the deficiency you owe the Bank. Keep in mind the car will probably be sold at an auction and will not bring as much as you would like it to bring.

As for the $50/month offer, the Bank is not obligated to accept it. It is your job to negotiate with them and convince them to agree to a payment you can afford by showing your income and other expenses. The only time the Bank is obligated to accept a particular amount is if they proceed to Court, obtain a Judgment against you, and then seek an order from a Judge as to how much you must pay. The Judge may then decide that the payment should be $50 per month, or even that you do not make enought money to order any payment at that time. Then again, the Judge could also decide the payment should be greater than $50 per month, too.