If my car is impounded, how do I legally walk away from it?

Question

I no longer want the car. It requires too much money to pay the fines and reclaim it.

Answer 1

Well, if you DON'T owe any money on it, no problem. It will be auctioned off to pay off the storage and impound fees.

On the OTHER hand, if you owe $, the lender or other bill collector will hound you and even attach your wages to get what's owed them.

Answer 2

Do you owe a bank money on your car, or do you own it outright (with title in-hand)? If you owe money, you still legally owe the money. In a car loan, they are still loaning you the money. Not just helping you buy the car. The collateral (car) is just there as leverage to get you to pay back the loan. And is the car worth more than the fees due? Then you could walk away from it by giving them the title, if you own it free and clear. Are you the registered owner? Because that is who will show that is responsible for any fees due. Good luck!

Answer 3

Call the insurance people and cancel the insurance, then send the SIGNED title, REGISTERED MAIL, to the impounding agency. That transfers the ownership to them. You may also have a form to fill out at your DMV, depending on the state...

Oh, you may still be liable for POLICE fines, though. ( like the reason the car got impounded )

Answer 4

You don't. If you give the towing company the title, they may stop the storage charges on it since they can now get it out of their way. But legally you still own the car, and owe for the impounding and storage to date.

They definitely will send you to collections if you ignore them completely.

Answer 5

You tell them you're abandoning it, and give them the title.

Of course, if you have a LOAN on the car, you still have to make the payments.

Answer 6

still your car

who has it - a private company? or the government?

you may be able to give them the title and walk away -
or if the value is below the amount due - you are up a creek

Answer 7

depends more info.... do you still owe??