Voluntary repossession vs involuntary repossession
April 6th, 2011 by Questions
I have a car loan, and it is going to be repossessed. However the finance company wants me to drop off the vehicle instead of having someone come and pick it up. Is dropping it off, even if I don’t sign anything considered a voluntary repossession, and can the finance company still come after me for the loan. Does it have to be an involuntary repossession for the Seize or Sue law to be in effect.
Posted from: Alberta
One Response to “Voluntary repossession vs involuntary repossession”
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April 06, 2011 at 12:25 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Whether or not you voluntarily return the vehilce or involuntarily return the vehicle doesn’t make a difference. The big difference is the type of contract you originally signed. The reason for this is that the Seize or Sue law only applies to Conditional Sales Contracts. So if you financed the vehicle through the Conditional Sales Contract then you may be fine to simply drop off the car and not have to worry about it, however if it wasn’t under this type of contract the creditors will legally be able to seize the vehicle and then come after you for the remaining balance of the loan.