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My son let a car go back because he could not make the payments. The car was used and older. Now a collector is trying to get 10,600. I believe he is an attorney. In one of the previous questions you stated that a reposessed truck being security, relieved the obligation on the debt. Since the car was not repossesed but given back, would that make a difference? Also, I saw where debt settlement did not apply to car loans. I assume my son’s debt has been taken over, so would it still be considered a car loan? Thank you

From what you describe, the car should have been the security for the loan and upon giving it back to the lender he should have been relieved from his obligations. However, it all really depends on the terms of the contract your son signed upon accepting the loan for the car. The contract may have had stipulations and obligations that your son agreed to by signing it that may have made the return of the car only part of his obligation.

Take a look at what he signed, it will all be in the fine print which, I know is painful to read but it will probably answer many of your questions. Each contract is different and when you sign it, you agree to it. Too many people don’t realize the terms imbedded in what they are signing and it’s unfair they bury it in small print but unfortunately, that’s what they are able to do. Best of luck to you.