It means you give the lender your vehicle instead of the lender taking it.
However, whether a repossession is voluntary or not, you will still have to pay off whatever balance remains after the creditor sells the car and applies the sale proceeds to the loan, known as the deficiency balance. There is no way to hide an inability to pay off your loans, and in fact, dodging your creditors can make the situation worse. If you think you are at risk of repossession, you should notify your lender immediately and try to explain your financial situation. On one hand, voluntary surrender is slightly preferable to involuntary repossession in that it demonstrates a willingness to work with your creditors. It can also save you the worry of having your car unexpectedly repossessed in front of your friends or family, which is a major emotional benefit. There is no way to hide an inability to pay off your loans, and in fact, dodging your creditors can make the situation worse. If you think you are at risk of repossession, you should notify your lender immediately and try to explain your financial situation. If you are searching for information on voluntary repossession, then you absolutely NEED to continue reading. Voluntary repossession involves a creditor (that holds a title to a piece of your property) taking back the property from you. Though the situation of voluntary repossession is far from ideal for a creditor, they will most likely be okay with it as a worst case scenario. After you contact them, they should give you a location as to where you can turn over the property. Voluntary repossession is a form of default and repossession. The main differences, and advantages for that matter, are you do not have to pay repossession fees, and the repossession will appear as voluntary on your credit report. Voluntary Repossession Saves Credit. You will have a record of default on your credit report if you elect voluntary repossession. You cannot stop this from occurring, but you can mitigate some of the other problems you may face on your credit score. If you fail to make timely payments on your car, the lender may try to recoup their financial loss by physically taking the vehicle in a process known as repossession. While repossession is often an involuntary procedure, there is also an alternative called voluntary repossession, or voluntary surrender. There is no way to hide an inability to pay off your loans, and in fact, dodging your creditors can make the situation worse. If you think you are at risk of repossession, you should notify your lender immediately and try to explain your financial situation. In regard to your credit, both a voluntary repossession and a standard repossession have the same effect on your credit rating. They will both appear as repossessions, and will both result in a significant negative mark on your credit history. Highlights. 1  Learn the differences between a voluntary repossession and standard repossession. 2  Understand your responsibilities regarding a deficiency balance you will owe. 3  Get help with your debt if you cannot manage the debt payoff on your own. Voluntary repossession is a term used to describe a situation in which a consumer voluntarily surrenders the property securing a loan, such as an automobile, to the lender that financed the purchase. Highlights. 1  Learn the differences between a voluntary repossession and standard repossession. 2  Understand your responsibilities regarding a deficiency balance you will owe. 3  Get help with your debt if you cannot manage the debt payoff on your own. Now, onto to your questions about voluntary repossession. To voluntarily surrender your automobile or other property to the lender that financed its purchase, you would first need to contact the creditor to explain the fact that you can no longer afford your monthly payments, and that you wish to surrender the property. Highlights. 1  Learn the differences between a voluntary repossession and standard repossession. 2  Understand your responsibilities regarding a deficiency balance you will owe. 3  Get help with your debt if you cannot manage the debt payoff on your own. Repossession is where a creditor holding the title to property takes possession of the property from the debtor. It is typically related to an automobile repossession, but can also apply to any asset and there is such a thing as a voluntary house repossession. Highlights. 1  Learn the differences between a voluntary repossession and standard repossession. 2  Understand your responsibilities regarding a deficiency balance you will owe. 3  Get help with your debt if you cannot manage the debt payoff on your own. Voluntary repossession means you give the lender your vehicle instead of the lender taking it. An advantage to voluntary repossession is your lender will not charge you a repossession fee. But, if the car does not sell at auction for the amount of money that you owe the lender, you will still owe the lender money. And the repossession stays on your credit report. 
http://www.ykabankruptcy.com/is-voluntary-repossession-bad-for-your-credit/ http://www.ykabankruptcy.com/is-voluntary-repossession-bad-for-your-credit/ http://www.projectdebtrelief.com/understanding-voluntary-repossession/ http://www.finweb.com/loans/voluntary-repossession-explained.html http://www.ykabankruptcy.com/is-voluntary-repossession-bad-for-your-credit/ http://www.bills.com/voluntary-repossession/ http://www.bills.com/voluntary-repossession/ http://www.bills.com/voluntary-repossession/ http://www.bills.com/voluntary-repossession/ http://www.masslegalhelp.org/consumer/debt/court/voluntary-repossess
what is voluntary repo