Legal Question in Credit and Debt Law in Missouri

Re: Vehicle loan

Your rights and responsibilities under the loan and under Article 9 of the Uniform Commercial Code would likely be dictated by Virginia law, since that's the place of contracting. Repo agents would be required to follow the law of the jurisdiction where they take the car. In Missouri repossession is lawful if it does not create a breach of the peace.

Voluntary repossession simply means you skip the hassle of dodging the repo man and turn in the car. Involuntary means they sneak into your neighborhood in the dead of night, enter your car, and drive it away. Involuntary repo increases your costs in the long run. The best approach is to turn in the vehicle. That does not mean you won't owe anything. Rather, it means that they will sell the car in a commercially reasonable manner, and they credit your loan with the sales price less the costs. What remains (deficiency balance) is yours to pay. If you pay it voluntarily, then there's no problem. If you do not, then you wind up getting sued. Keep in mind that the Soldiers and Sailors Civil Relief Act may provide you with relief from the lawsuit. You should check with JAG on this issue, since they know that statute backwards and forwards. Also keep in mind that some credit counseling agencies may help you keep your car, and are now required before you take bankruptcy.

Good luck with whatever you decide, and thank you for your service to our country.