Legal Question in Credit and Debt Law in North Carolina

This is correct but the main reason for this is in traditional "tow truck" repossessions, the owner is to be afforded a chance to redeem the vehicle before it is sold. If they do not do these you could sue for damages. In the case of a voluntary repossession, it is presumed that you do not want the vehicle or no longer could keep it. To get damages, you would have to show the desire and ability to redeem the vehicle.

Attorney Love is correct, but I don't see how you would be damaged here at all. First, you indicate this is a voluntary repossession. The creditor has to allow 10 days to redeem the car. However, the loan documents usually allow for acceleration of the debt upon a default or repossession. What this means is that the whole balance remaining on the loan will be due not just the amount that you were in arrears. Most debtors will have a hard time coming up with that kind of cash.

The car is sold at an auto auction which seldom brings in anything close to the value of the vehicle. Usually, this is a lot less than what is owed, by the time that collection or sale costs are added in, such that you will still ending up owing a deficiency on the car. So what would your damages be? You still have to pay for the car.

The best thing is to avoid a repo in the first place. If you want to keep the car, consider filing a bankruptcy. If the car has been repo'd you may be able to get it back and if you don't want it, it will stop the creditor from suing for a deficiency since the deficiency can be discharged.

If you don't care about the car, you are not saving anything or helping your credit by doing a voluntary as opposed to involuntary repo. Its still a repo and the lender is still going to charge collection costs and its still going to be reported on your credit as a repo. However, once the car is gone, the deficiency becomes like any other unsecured debt and a settlement can be negotiated if and when you have the funds.