Legal Question in Credit and Debt Law in North Carolina

It would be better if your uncle could work out some other alternative to sell the car. If he surrenders the car, whether its voluntary or not, the lender is going to assess collection costs. The lender will then take the car to an auto auction. If its some other arrangement by the dealer (like a buy here pay here lot) then the dealer will try to re-sell. Elther way, if the car sells for less that what is owed, plus costs to sell the car and any other collection costs, the lender will seek to hold your uncle liable for any deficiency between what was owed (plus costs) less the sale proceeds. If your uncle does not pay the deficiency, then eventually the lender or whoever the lender sells the debt to can sue your uncle. If that happens and the creditor gets a judgment, they can sek to enforce the judgment. I don't know your uncle's debts and circumstances or how his property is titled and if there are any liens (like mortgages) and I don't know if your uncle lives in North Carolina.

Your uncle needs to try and figure out what is a priroity and what can be done with the car. Maybe the car could be sold. Or maybe bankruptcy is the answer - especially as there seems to be some medical debt. Bankruptcy does not have to be filed now. If nothing can be done and bankruptcy is not an option right now, then the car may have to be repossessed. In such case, your uncle may be able to work out some kind of deal to resolve any deficiency.