Voluntary repossession on a vehicle
I need to do a voluntary repossion of my vehicle. My husbands job has cut his check and we can no longer afford the payments. I was told by the finance company I would have to pay the difference in the sell and the payoff in a lump sum, I don't have that kind of money, what really happens If I can only make small payments on this. I am trying to go about this the right way, Help!!
1 Answer from Attorneys
Re: Voluntary repossession on a vehicle
Your creditor says they want a lump sum payment for the deficiency. The creditor is allowed to ask for this under your contract. This route is the way to go for the least amount of damage to your credit rating.
Once the deficiency goes a certain number of days past due and unpaid, it will be marked for collection and sent to either a different department of the creditor or to a collection agency. At that point, your credit report will show a collection, but it is often possible to work out a payment arrangement over time. The creditor is still not obligated to accept any payments made over time once you default on the original note.
If your creditor decides to file a lawsuit to get a judgment for the deficiency amount and is successful, you will be able to pay the clerk directly if the creditor does not want to accept your payments.
I would recommend you see a professional consumer credit counseling agency in your area such as Family Service of the Piedmont in order to get more comprehensive advice about your financial situation.