Attorney Bob Litchfield explains the hidden financial dangers in car loans that ruin the lives of many unsuspecting young couples. If you have an illness, an accident, or a job layoff and you cannot make your car payments, don't think that you can just give the car back to the dealer and walk away from the unpaid balance of the car loan. What the law allows the car lender to do next can ruin your financial life.
Bankruptcy may be the only way that you can avoid being sued for a deficiency claim on a car loan, even if you voluntarily give the car back.