Legal Question in Credit and Debt Law in Alabama

Re: Voluntary Reposession

First, talk to your creditor and let them know your intent. By agreeing to a "voluntary repossession," you may reduce your creditor's expenses in retaking the car, which you otherwise would be responsible for paying. But

remember, even if you return the car voluntarily, you still are

responsible for paying any deficiency on your loan, and your creditor

still may enter the repossession on your credit report. Any difference between what you owe on your loan and what your creditor gets for reselling the vehicle is a "deficiency." The creditor can also file suit for the defiency owed on the loan. If they obtain an deficiency judgement that will also likley show up on your credit.