How To Stop
Repossession
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You don't want your car repossessed and it is the last option a crediort wants to use in order to recover their money. A repossession will give you a bad credit rating along with being responsible for the repossession cost and for the difference of the car loan and the amount the credit receives after the car is sold at auction.
A car can be repossessed after only one late payment because it is considered default on the loan agreement, but the creditor normally will not exercise this option until the payments are substantially past due. How late just depends on the creditor so it is anyone's guess.
Most states have specific laws concerning car repossessions and these laws can vary from state to state. A vehicle repossession is a civil matter and not criminal. Because it is a civil matter, the lender cannot use law enforcement or police to locate the vehicle. This means the lender cannot report the car stolen. The only way for a creditor to repossess the car is to locate it themselves or use a private party, otherwise known as a "repo man". A creditor or its contracted private party cannot open your garage door in order to locate and repossess the car. However, they can sit and wait until you move the car outside in order to take repossession.
If you are in default on your car loan and are asking yourself "How do I stop my car from being repossessed?", then you have several choices.
The first choice is to contact the creditor and discuss your financial situation. Ask your creditor about their willingness to work with you as you try to get your payments back on track. Ask the creditor if they can reconfigure your car loan. Sometimes your missed payments can be added to the end of a new loan.
The next option is to consider selling the car. Even if by selling the vehicle you won't raise enough cash to pay the full loan off, it will at least be more money then you will receive for the car if it was sold at a auction. If you use this option, it would be a good idea to inform the bank about your plans of selling the car. This may temporarily stop the creditor from repossessing the car. Once the car is sold, and you have paid the creditor the money you received from the sale, the creditor will make arrangements so you can pay off the rest of what you owe them.
The third option that can help you keep your car is to consider filing for bankruptcy, especially if you have considerable debts beyond that of your car.
Lastly, but is not recommended, is to hide your car and not answer creditor phone calls. These evasive tactics may succeed in the short run in order to keep your car and have transportation, but while you're playing this Hide-n-Seek game with your car, your credit will be negatively effected. You should note that filing for bankruptcy will also stop all the harassing calls.
It is important to remember to create a plan to get your finances back on track and catch up on your car payments, if you want to keep your car. Take the proper steps necessary for your situation to get your finances stabilized.
Read The Debt Trap & How To Recover", then give us a call.
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Ways To Prevent
Repossession By
Bankruptcy
Bankruptcy is the legal process of announcing your inability to meet financial obligations on loans and debts. While this is perceived by many as a desperate measure that you should never consider unless absolutely necessary... the days of that attitude are gone. Some people file for bankruptcy in order to protect their properties from repossession. One of the most common reasons for bankruptcy is to stop your home or car from being repossessed. Take a look at some of these options below.
Filing for Bankruptcy
When you file for a bankruptcy petition, your creditors will be prevented from repossessing any of the properties you used as collateral for the loans that you have taken on. This process is called the “Automatic Stay,” an order issued by the bankruptcy court after you file for the petition.
Chapter 7 Bankruptcy
Filing for a chapter 7 bankruptcy to stop repossession will require making negotiations with your creditors. You will need to come up with a signed agreement with the creditor that you will pay the outstanding balances of the debt after you have filed for bankruptcy in order to halt the repossession of your properties. This gives you a second chance on debt repayment but you need to ensure that you will be able to make repayments this time or else you will risk losing your properties once more.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, your debts will be replaced by a repayment plan that needs to be finished in a 3- to 5-year period. This bankruptcy option is ideal for borrowers who owe more than what the property is worth since the payment plans for this can lower the overall cost of the debt.
Get Legal Advice
If you are considering filing for bankruptcy for the purpose of halting repossession, be sure to consult a competent and experienced bankruptcy attorney to guide you through the process. Filing for bankruptcy can be complicated. A good bankruptcy lawyer will tell you everything you need to know and even lay out the most practical options for you.
Bankruptcy certainly has some major drawbacks including tainted credit record but it can be a viable option especially for those looking for a quick and effective way to stop repossession.
Read The Debt Trap & How To Recover", then give us a call.
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