Legal Question in Credit and Debt Law in Florida

Re: garnishment

If you turn in the vehicle, it's a voluntary repossession. If the repo man comes and gets the vehicle, it's an involuntary repossession. Either way, what happens is exactly the same.

The finance company will spend some money to prepare the vehicle to be sold, and will ship the car to an auction site. At the auction, the car will be sold to a dealer for wholesale value. The sales amount is credited to the amount you owe on the loan. The difference between what you owe on the loan and what the car sold for is the deficiency, and it represents what you still owe on the loan after the car is sold.

If you are sued for the deficiency, and the creditor obtains a judgment against you, it can try to garnish your wages. However, you may be exempt from wage garnishment.

There's a long way between now and garnishment. If you have decided you cannot afford to keep the car, you should probably turn it back in to the dealer, then attempt to make monthly payments on the balance. Once the car has been turned in and sold, you can probably negotiate lower payments than what you are required to pay now. No guarantees, though...