Q: Money is tough right now. I am debating giving my car back to my finance company. I live in PA.
I could owe them over 20,000 after they sell it, moved to much equity to high interest loan in 2019. During the pandemic I skipped payments basically still owe what I paid for it. Are the chances of a lawsuit from them high?
A: If you voluntarily choose to give your car back to your finance company, it is possible that they may still pursue you for the remaining balance on the loan. This is known as a deficiency balance, which is the difference between what you owe on the loan and the amount the finance company is able to recover by selling the vehicle. The likelihood of a lawsuit depends on various factors, including the specific terms of your loan agreement and the actions taken by the finance company
David Kennedy Bifulco agrees with this answer
A: I agree with Attorney Claus you could be subject to a deficiency action after you surrender the vehicle. There are many factors that determine if a deficiency action will be brought. To be certain about the amount you will be liable for and to have finality with the transaction a voluntary surrender is usually the best option where the dealer can let you know exactly what you owe when you surrender the vehicle and put everything in writing so when you turn in the vehicle and pay the surrender fee and balance you will not owe anything beyond that. Make sure you get all the details in writing before you surrender the car.
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