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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (702) 463-4900
- View Profile
- Answered
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- Pennsylvania
- (610) 676-0650
- View Profile
- Answered
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.
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.
