If I surrender my car will I be garnished for amount still owed?

Question

Will I be sent a 1099 during tax time, what about when I go back to work? Will they garnish my wages. I dont think anyone is going to take over my car, a repo is my only option...but Im scared, how far will they go to get their money?

Answer 1

Yes, someone has to pay for the bill. Even though they will resale the car. Talk to them and try to make a deal/

Answer 2

They will repo it and resell it after so many days of holding it. The amount they sell it for will be deducted from the owed amount and if any money is still due then you will be responsible for that amount including additional charges incurred (ex: repo man, transfers, smog, taxes).

This will also be placed on your credit report but not in a good way. Call the loan company and talk to them. They can usually help (as long as you do it early on) and if you have a good record with them up to this point.

I know this much because of my best friends son went through the same with his truck. But he was able to talk to them before it went into actually being repoed. He got real motivated when he found out he would still be responsible for payments.

Answer 3

If they get a judgment and your state allows wage garnishment you may be garnished. Some states restrict wage garnishments to taxes or child support only.

If they write it off as uncollectible then a 1099 is likely. You can beat that if you are insolvent when they write it off. See your tax advisor for details on that.

Answer 4

They will take your car and try and resell it. Then they will take the amount they sell it for and subtract it from the amount you owe. Then they will add court costs and attorneys fees and that will be the amount that you will owe. And yes they will go and get a garnishment on your wages.

Answer 5

yep