SHARE

Repossession often occurs in high credit risk auto loans where the borrower consistently falls behind monthly payments. However, in some states not having the required insurance as mandated in the lease or loan contract can lead to default and hence car repossession. Fortunately, you can seek car repo assistance if your car is being repossessed and explore ways to get it back.

As a first step, speak with your lender to know the real reason your car is being repossessed. Often, the real reason can help you find proper assistance with repossessed car and determine ways to resolve the issue at hand. If it is due to delay in payments, many banks or the repossession company can let you have your car back before being sold at the auction if you can pay the full loan amount as well as the repossession costs. They may reinstate the loan with new payments terms. But, it is likely that the repossession remains on your credit history. The new payment plan will come into force only if you strike a deal with the lender and not after buying the car at the auction.

Before you set out to seek help with car repo, ponder over a few questions to make an informed decision. Will you be able to afford the costs of maintenance, insurance, gas even if you got your car back? If you answered a No, then redeeming your car may not be a wise decision. It would be better to opt for cheaper modes of transport such as public transport.

If you are in a difficult financial situation and are even unable to pay your bills, you may consider filing for bankruptcy. But, you must be swift lest the repo agency sell your car at an auction. This can help you keep your car and rework the payment plan. You can seek car repo assistance from an expert bankruptcy lawyer if this option is available to you depending on the type of bankruptcy you plan to file. If your car is auctioned, ask for any outstanding payments called deficiency balance due to you.

However, remember that even if your car is being repossessed, your property cannot be damaged. So, if your car is locked in a garage, they cannot break the lock to take the car away. Also, they can only take the car away and not your personal belongings in the car.

LEAVE A REPLY

Or
Please enter your comment!
Please enter your name here

WordPress spam blocked by CleanTalk.