QUESTION
What will happen if I do not pay the car loan and just return the car to the dealer?
Asked on Sep 04th, 2012 on Bankruptcy - Michigan
4 ANSWERS
Family Attorney serving Henderson, NV
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Harris, Yug & Ohlinger
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Worst case scenario: they will sell the car and seek a deficiency judgment against you and attempt collections actions such as wage garnishment.
Answered on Sep 13th, 2012 at 8:35 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You signed a contract that requires you to pay the full amount of the debt. Therefore, the lender will sue you if the car sells for less than the debt. Let me know if you would like any further information.
Answered on Sep 13th, 2012 at 8:18 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The car will be resold, you will be charged the costs, and sued for the shortfall between the proceeds do the sale less costs and the amount you still owed the dealer. The amount may be substantial and generally what you are planning is not a wise idea.
Answered on Sep 13th, 2012 at 8:09 PM
They sell the car at auction... (probably for about five hundred bucks) .. and then sue you for the rest. You should negotiate with them instead.. find a new place to borrow money (that is, refinance the car).
Answered on Sep 13th, 2012 at 11:35 AM