Legal Question in Credit and Debt Law in California

Re: ability to pay auto loan

The only way to return the vehicle is if, by some miracle, the seller was willing to accept the return and allow you to forego the responsibilities of the contract you entered. Otherwise, you are still liable for the full principle and interest on financing.

Your best option would be to attempt to sell the car and pay off the car loan. Another option, would be bankruptcy, if the debtor simply cannot meet their monthly expenditures.

The information provided to you is of a general nature. We hope this information has been helpful to you, but you should always obtain competent legal counsel who is familiar with your specific legal issues to determine the best course of action. If we can help you in the future with anything, please feel free to email or contact us at www.unalaw.com

Re: ability to pay auto loan

Thank you for your inquiry.

You have two options, as I see it. You can negotiate with the creditor, and if agreed, THEY can allow you to exchange the car for a release of all remaining debt. This is possible, but rare, as they want as much as they can.

Your other option is to declare bankruptcy, which will not damage your credit irreparably, but might at least temporarily lower your credit score.

I hope this helps, but if you have any other questions, please feel free to email me directly at [email protected]. I'm happy to help in any way that I can.