I am no attorney and laws on this subject differ widely from state to state. However, from personal experience I can tell you that, in general they can and they will. Some states do not allow a company to actually PHYSICALLY repossess your vehicle, but they won't tell you that when they 'come to get it'. Generally, they will list it on your credit file as 'charged off', meaning you didn't pay the balance, they couldn't get you to pay the balance, and they took a loss. They can claim this on their multi-million dollar tax write-off and then turn around and sell it for another profit. This is why I haven't set foot in a Sears store since 1981. Check your state laws carefully and then decide (a) if you want to voluntarily release it, (b) if you want to get an attorney (c) if you want to sell it yourself. The one with the most gold makes the rules unfortunately, and no one ever said life was fair. Good luck.