legal  loans


Question by  pipera (37)

Can collateral on a loan be voluntarily turned in?

I need to turn in my car as I can not pay the loan.


Answer by  Melissa101010 (4405)

Yes it can but it will still go on to your credit and you will probably still loose your car too. Banks are greedy.


Answer by  dee68 (244)

Yes it can voluntarily be turned in but most times it is already too late as the principal interest has exceeded the value of the Collateral item in question.


Answer by  TennG78 (254)

Any time an individual is unable to pay off a loan that has collateral, the collateral itself may be surrendered. For example, a car would be considered collateral on a loan. This is often referred to as a voluntary reposession in which the vehicle is surrendered and the loan is considered paid off.


Answer by  TheAnswerFairy (2345)

You will have to talk to the agency that issued your loan, but they will most likely accept that scenario. It saves them the cost of repossession.

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