Can you sell a vehicle if the lender refuses to repossess it?

If you file a Chapter 7 you can generally surrender it and owe nothing on the vehicle. I would suggest waiting until you talk with a bankruptcy attorney. If you have too much income, you may be able to use it as an income deduction if you still have possession of the vehicle at time of filing.

Put the vehicle in the lender's parking lot. Put the keys with a note in an envelope and drop it in the mail slot. Advise the lender you are filing bk, and returning the vehicle. Give the lender your attorney's name and contact information. Good luck!

If you're in bankruptcy, your attorney can refer you to one of the companies that take care of used cars for debtors.

Unless you have possession of a clean title, you have nothing to sell. Your attorney may be able to get you a clean title through a process called redemption if you decide to proceed with a chapter 7 bankruptcy.

The creditor might be more motivated to act once he gets a bankruptcy notice from the Court. Your lawyer (and you should find one) will probably advise you to state( On one of the BR papers called Statement of Intention, that you intend to surrender the vehicle. Have him or her separately notify the lender, and offer to have the lender call you to set up a convenient time for him to pick up the car. You generally may not sell the car without the lender's permission. That is a crime in most states. If the creditor persists after your bankruptcy discharge in ignoring you, drive the car to the nearest location to the lender, and send the keys to the lender with a description of its location. Or if you are very bold, you could write the lender, by certified mail, return receipt requested, that after a given date (say...3 months after your discharge), if they have not picked up the car, you will regard it as abandoned.

You cannot sell a vehicle without the title, and presumably the lender has the title. You can force them to give back the title during your bankruptcy, although you might have to pay a little bit for it.