If I let a vehicle be repossessed, can the bank take any action against me?
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If I let a vehicle be repossessed, can the bank take any action against me?
I can no longer afford to make payment on our motorhome.
Asked on June 14, 2012 under Bankruptcy Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Yes, unless the bank agrees to take the car as payment in full of the debt, it may take action against you if you surrender the car. The bank is entitled to payment of the full remaining outstanding balance of the loan--it does not have to take less than that. If the car's current value (e.g. "blue book" value) is less than the amount of the loan, the bank could sue you for the difference, unless it agreed not to.
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