If you turn your vehicle back in to where you bought it because you can no longer afford note, are you responsible for amount owed still?

My husband is upside down on his motorcycle and we can’t sell it. Can they then garnish our bank account? We were told all that would happen if he turned it back in is that it would hurt his credit.

Asked on March 23, 2012 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The lender (e.g. the dealerhip, a bank--whomever financed the motorcycle) is entitled to receive the full value of the loan. If the motorcycle's current fair market ("blue book") value is less than the remaining balance of the loan, the lender would have the right to sue you for the extra money. If they take legal action, they may be--if they can prove that you still owe additional money--entitled to levy on (or garnish a bank account), or execute on (have seizd and sold) some of your property, or put a lien on real property, or potentially garnish wages in most states.


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