When you enter into a voluntary car repossession agreement with your lender, your credit score and report will reflect that information.
When you reinstate a car loan, it does not change derogatory marks on your credit reports that led up to the car repo.
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Voluntary repossession can still leave a deficiency balance that the lender can pursue you for payment and put on your credit report.
Voluntary repossession is still a repossession. Repossession of any type is considered very negative and will have a substantial impact on your credit report and credit scores.
Car finance company may have in its contract that a car loan can be charged-off even when making timely payments if the car is destroyed or stolen, or its value substantially depreciates.
Texas Car Repo: Whether a car repossession in Texas is voluntary or involuntary, there are certain procedures that must be followed after the bank or finance company repos a car.
Surrendering your vehicle also known as voluntary repossession to the lender does not void the car loan contract. You are still responsible for the loan and deficiency balance.