If I voluntary surrender my financed car can the company lien my house or garnish my pay?

Question

do to cut backs at the office and spouse out of work we are having finacial difficulties and would be better without a 700 month car payment.

Answer 1

If at all possible do not turn in the car. Try to work out something with the company who financed it. A "voluntary"
turn in has the same effect as a reposession on your credit rating. Also if they do take the car back and sell it for less than what you owe on it. you are still lible for the difference. If they agree not to seek payment for that you will get a 1099 at the end of the year for the amount they "forgave" and you will be required to include that on your income tax return.
I know this doesn't directly address your original question but these are things you need to know as well. Rules on Liens and Garnishments vary from state so I can't help you there.

Answer 2

Yes they can, but it depends on which state you live in. You should try to negotiate lower payments with the lender first.
Explain the situation and see what they can do. Some are willing to work with their customers, others are not.
If you have a $700.00 per month car payment, that tells me your credit is not so perfect. However, check your state laws on reposessions and see what it says for debt collection.
Good Luck !

Answer 3

Yes they can. The good news is that creditors will often settle for partial payment. That reduces the inclination to drop into bankruptcy. That leaves you with 10 years of rough credit situations.

Answer 4

Sadly it is not the finance Co. who bought the car so handing it back does not alter the contract. they have you by the short and curlies, follow "andrea_lo advice"

Answer 5

yes they can. It happened to me. I had to file bankruptcy to get them off my back.