What does a voluntary repossession do?

Voluntary repossession — also called voluntary surrender — means that you return your car to the lender because you can no longer meet the terms of your loan agreement.

What happens to your credit after a voluntary repossession?

You can even rebuild your credit after repossession by getting new loans and paying them off over subsequent years. A voluntary repossession is essentially the same thing as an involuntary one: a defaulted loan. Either one will drag down your credit scores.

What’s the difference between a voluntary Repo and a Repo Man?

With a voluntary repossession, you eliminate the chaos and cost of dealing with a repo man. In a nonvoluntary repossession, lenders send a repossession agent to collect the vehicle, and you never know when that will happen. The agent might get the vehicle from your home, your work, or wherever you leave it parked.

What’s the difference between voluntary surrender and repossession?

Voluntary Surrender VS. Repossession Surrendering your vehicle and repossession are very similar in financial terms. You are unable to make the loan payments, so the lender is taking the vehicle back. It will be sold to recoup as much of the debt you owe as possible. The emotional difference between the two can be day and night — literally.

What does it mean when a car is repossessed?

What is voluntary repossession? Voluntary repossession — also called voluntary surrender — means that you return your car to the lender because you can no longer meet the terms of your loan agreement.

Can a creditor agree to a voluntary Repo?

If your creditor is unwilling to accept a late payment and insists on repossession, you may be able to convince them to settle (i.e. reduce) your debt in exchange for offering a voluntary repo.

What’s the difference between voluntary repossession and default?

Voluntary repossession — also called voluntary surrender — means that you return your car to the lender because you can no longer meet the terms of your loan agreement. Voluntary repossession is an immediate alternative to repossession , which is when the lender takes action to seize the vehicle once your loan is in default, per your auto

How does voluntary repossession affect your credit score?

According to Experian, one of the three main consumer credit bureaus, your credit report will list “voluntary surrender” instead of “repossession,” which may do slightly less damage to your credit. The negative impact to your credit may make it more difficult to get a loan down the road.

Where can I get help with voluntary repossession?

If you have any questions or are considering voluntary repossession, call our Pennsylvania office at (215) 701-6519 or our New Jersey office at (609) 755-3115 to schedule a free, confidential consultation to discuss your options. What is Voluntary Repossession?