Expert: Michael Brotherton - 10/17/2008

Question
My sister purchased a truck about 5 years ago. Soon there after she realized she couldn't make the payments and went to the dealership (who is also the loan holder) to give them the car back.  They wouldn't take the car back or make any payment arrangements.  Her husband joined the military and they soon moved from Florida to Texas to Georgia.  During the intervening years she eventually stopped making payments all together.  She is now moving back to Florida.  She is afraid of being arrested, and would like to just give back the truck, but they wouldn't take it before, so she still don't think they will take it now.  What are her options for resolving this matter?

Answer
First, this is a civil matter not a criminal one.She will not be arrested. And even though the creditor did not want the car at that time doesnt mean they wont take it now. They must recover their losses so in most cases they would at some point take the car. If not,the only way they can recover their loss is to file suit and attach assets such as checking accounts and real estate if applicable. Florida is a consumer friendly state and wage garnishments are limited. She must make over $500 a week for the creditor to be able to garnishee her paycheck.

If she has already made an attempt to give the car back and they wont take it, and she cannot make the payments, tell her to drive the car until they come and get it or contact them to make payment arrangements. If they wont take her money it is their choice.

If she has an income but cannot make full payments she may look into chapter 13 to try to reduce payments. This may or may not work but it is still an option.

Tell her to relax and do the best she can. She wont go to jail.

Mike