What Is a Voluntary Vehicle Repossession?
Voluntary vehicle repossession is a strategy that involves the owner of a vehicle choosing to proactively and voluntarily surrender that vehicle to the lender holding a lien on the vehicle, usually because the debtor can no longer afford to make payments on the car loan. This type of car repossession is sometimes utilized in hopes of preventing the accumulation of various fees and penalties that only add to the indebtedness, while also providing the lender with the opportunity to sell the repossessed car and partially offset the remaining balance due on the loan. Depending on local laws, voluntary vehicle repossession may or may not release the debtor from the responsibility of paying off the car loan, either through garnishment of his or her wages or some other court ordered action.
