Q: My car is collateral for a loan I have with one main financial company. Can I voluntarily surrender the car?
A: This will have a negative effect on your credit. You can try to voluntarily surrender the car. OneMain is NOT required to take the car in satisfaction of the loan. They can refuse to come pick up the car or take the car. They also don't have to release the lien on the title if they refuse to take the car. Instead, they will report your account as delinquent to the credit bureaus and eventually "charge off" the unpaid balance. Even if they do take the car, they will sell it and if the sale price is not high enough to pay off the loan, you are still responsible for the unpaid balance of the loan. They can sue you and get a judgment for the balance including all of the late fees and added interest. The end result is you will owe a much larger balance and have possession of a car that you can't sell. Even if they do not sue and get a judgment, the negative remarks will remain on your credit report for about 7 and a half years. If you are having financial problems and can no longer afford to make the loan payment, you should have a consultation with a local consumer bankruptcy attorney. He or she will explain all of your options - non bankuptcy options and bankruptcy options. Many offer free consultations.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.