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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117447
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I live in the state of Alabama. My wife and I are ...

Resolved Question:

I live in the state of Alabama. My wife and I are voluntarily having our cars repossessed. We called the company before to see if they would work with us on the payments. The answer we got was pay for what you owe or we''ll come get them. To keep from filing bankruptcy and losing everything this is was we came up with to save money. Times are hard right now and we have 2 sons ages 2 years and 9 weeks old. But the company will not work with us. To get to the point what happens when you voluntarily turn a car back over.
Submitted: 9 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 9 years ago.
Sorry to hear about your troubles. What will happen is that they will sell the cars off at auction and you will end up responsible for the difference between what they sell the cars for and the remaining balance on the loan. This will also affect your credit rating, which I am sure would be the least of your worries considering the situation you explained.

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Customer: replied 9 years ago.
Reply to PaulMJD's Post: After the vehicles are sold at auction and we are responsible for the remaining balance of loan what legal actions could they pursue against us ( like take us to court, garnish our wages, etc. Is there a possibility they may just write the balances off as a loss for their tax purposes?
Expert:  Law Educator, Esq. replied 9 years ago.
I have not seen many of these companies just write off the balances. They would probably try to work out a payment schedule with you and absent your ability to pay, they will probably take you to court and try to garnish you wages. I have several clients with this same issue right now and we have had to work out some form of payment arrangements with the companies, they are not to willing to work with the clients much either.

Sorry that I could not be more positive for you.
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