voluntary reposession

[jasonlen]

I purchased a car in Louisiana and the car was also financed here in Louisiana. I gave the back due to financial troubles. I am now being sued for the balance owed on the car. I was informed by a co-worker that in Louisiana if you finance a car and you buy the car in Louisiana and you voluntarily reposess the vehicile, then you are not responsible for the balance owed on the vehicile. The car was given back and not seized. So my question is, is that really a law in Louisiana or is there a law like this. If so I will like for as much information as i can get.
Thanks
Jason

 

[Michael Wechsler]

I don't know the laws in LA regarding this and I would highly doubt that this is the law. Here is why -- if you surrendered the car and were forgiven for the balance, your breach would cause the seller significant losses that would not be fair and equitable. After all, he is getting back a used car that is probably worth less than the value of your remaining payments on the car. Once you drive out of the dealership, your car becomes a "used" car. So if a person decides they want out of a binding contract, would you think that they could just walk away from the deal? It doesn't make sense and the dealer would not have the benefit of his/her bargain. I'd go back to the source and ask for the FULL explanation and a source if possible.

That said, I cannot say that such law doesn't exist and LA has a different set of laws, which is the only state whose laws are based on the French Civil Code. The reason for this anomaly is history...