If I have a car title loan and don’t want to pay it, what happens if I just turn it in?
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If I have a car title loan and don’t want to pay it, what happens if I just turn it in?
Asked on December 15, 2011 under Bankruptcy Law, Nevada
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you are obligated on a loan for a car and no longer want to continue making payments on it, I suggest that you carefully read the loan agreement in that its terms and conditions control the outcome of what will happen if you simply turn in the vehicle absent conflicitng state law.
Most likely the car will be sold and its sale proceeds will be applied to the amount owed. There will be costs for the auction of the vehicle tacked onto the amount owed as well. Based upon what is owed and what is received, that will be the difference owed with accrued interest on the amount plus any monthly payments not made on the purchase.
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