Legal Question in Credit and Debt Law in Alabama

re: a car loan

we bought a truck back when my husband was making good money and since have had to get rid of bills due to his income changing for the economy . I wanted to voluntarily return the truck to the finance comp but they keep saying that if we return it then it will be sold at auction and we will still owe the balance and that they will garnish our wages and we will end up paying more then ,then what we are paying now. Is that so? I cant afford what we pay now let alone take a chance we end up paying twice as much. Please help


Asked on 3/28/09, 5:01 pm

1 Answer from Attorneys
Randal Ford Ford Firm

Re: re: a car loan

Your auto dealership is being straight with you. You had to borrow the money to purchase the car (i.e. financing). The truck is probably worth much LESS than you currently owe. If you "give it back" to the finance company they will sell it at auction for perhaps a couple thousand and you will owe the difference.

Take how much you owe on the day of the sale. Subtract the amount it is sold for a a wholesale auction and you OWE THE DIFFERENCE. PLUS you have NO truck, just debt.

If you have owned the truck for more than 190 days, you might consider a chapter 13 bankruptcy petition so you can pay ONLY what the truck is worth and not what you actually owe.

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Answered on 3/29/09, 12:55 am


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