What happens when you voluntarily surrender a vehicle?
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What happens when you voluntarily surrender a vehicle?
I have an auto loan on a 2007 truck. I have been paying on the loan for almost a year. I am currently unemployed and don’t have enough money to pay my bills. Can I voluntarily surrender the truck, and if I do, what can or will they do to me?
Asked on March 24, 2011 under Bankruptcy Law, Kansas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You will need to read the contract that you entered in to to purchase the vehicle to see what it says. But in this economy and with everything the way that it is I would speak with the lender about turning in the vehicle and avoid repossession fees and the like. Look in the contract- or have an attorney look at it for you on a flat rate basis - and see what it says about the issues here. See if you can do it. See there are any fees or penalties involved. Technically it is a breach of contract and you would still be liable for the balance. But maybe if you speak with them they will let you surrender the vehicle, cancel the contract and waive any fees. Try and see. Good luck.
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