Relative Died, Truck Only Paid On One Year, In Virginia

[katiebkool]

My question involves estate proceedings in the state of: Virginia

My recently deceased father bought a very expensive truck last year, and there is, of course, more left owing the bank on the truck than it is worth (or can be sold for). No one in the family is willing to pay the monthly payments, & we just want to get rid of it, so what is the best way to handle this? If we let it be repossessed, is his estate legally obligated to pay off the remainder of the loan? Thanks so much for any help!!

[aaron]

To be clear, there's no cosigner and there's no one else on the title? This was a purchase, not a lease?

The estate's best option is probably to sell the truck and pay off the loan. Allowing repossession is likely to increase the estate's exposure. But if I were the P.R. I might try contacting the lender to see if I could work something out - it will cost the lender money to try to assert a claim against the estate.

[katiebkool]

Thanks so much Aaron for your response!

Yes, it was a purchase, and no, there is no co-signer or anyone else on the title.

We called the bank (800#) and were told that we should just voluntarily surrender the truck to the dealer, and they would most likely write off any remaining debt. Does that sound right?

[aaron]

"Most likely" isn't quite what I would want to hear. I would prefer to have them say "won't", and confirm it in writing. But sometimes you can't get everything you want.

[csp7707]

I have a similar situation in a different state. We did a "voluntary repossession". The loan company sold the car at an auction for a price lower than the loan amount, and now they say the estate owes the the balance of the loan. There is not enough money in the estate to pay off the loan, plus there are other creditors standing in line.

[katiebkool]

Thank you Aaron and csp7707--I appreciate your info. We will pursue getting the bank's intentions in writing if we can.

[katiebkool]

Updated info: I just found out that the dealership co-signed for my father's loan. (I've never heard of this happening, and wonder what relation this has to him being 82 years old at the time he got the truck last year.) The bank advised that we take the truck back to them with the death certificate. Just so I can be prepared, what are they likely to do at this point? Are they responsible for the loan or will they attempt to/can they get money from his estate?

Thanks so much....

[aaron]

If the dealership is cosigner, I would expect the bank to seek recompense from the dealership and perhaps for the dealership to pursue the estate. But what will happen? That I don't know.

[katiebkool]

Aaron, thanks again, and my goodness, I like this site!