After voluntary repossession what is your credit obligation?

Answer

Keri, I suggest you think long and hard before you let it go back. The results are not nice at all on your credit rating. Read your contract where it mentions "deficency balance". Chances are that you will be responsible for any amount owed after the car is sold. If the payments are toooo high, ask the lender if they will lower the interst rate. If you have lost income but expect to regain it, ask the lender to defer a payment to the end of the loan. If you cant do anything else, try to sell the car yourself. You will get more for it than the lender will at auction.

I totally agree with the above answer. Repossession should be the absolute last resort. A repossession is a repossession. The only difference in voluntary and non voluntary is that you will not have to pay the repossession fees. This will stay on your credit report for 7 years and will cost you dearly. Sit down with the creditor and work this out. Like the above answer sell the car yourself or see if you can get someone to take over the payments. Do not allow the car to be repossessed. This may seem like the easy way out, but in the end it is the hard way out.