My car was repossessed, what can I do?
Are you worried because your car creditor has contacted you and threatened to repossess your car? Or maybe the worst has happened and you woke up one morning to a missing car and a message from the creditor that they took it. What can you do now?
File a Bankruptcy
Bankruptcy is a useful tool in this situation. Bankruptcy can get a bad rap but don't let an outdated perception of bankruptcy keep you from using it to your advantage!
File a bankruptcy and get the car back. A chapter 13 repayment bankruptcy can be used to halt the sale of your repossessed vehicle and get it back to you. You can then use the bankruptcy to catch your payments up and pay the car off.
File a bankruptcy and give the car up. Maybe this car has been a ton of trouble and you don’t want it anymore. Bad news is that you might owe money on the loan, even after the car was repossessed. You can use a bankruptcy to wipe out this deficiency judgment.
Try to Settle
Try and work out a settlement with your car creditor. Call the creditor and see what it would take to get your car back. See how long they will give you to get the funds together, and try to work out a payment arrangement. (Make sure you get it in writing!)
Contest the Repo
Contact an attorney who focuses in auto fraud and consumer rights. There are laws that must be followed when a vehicle is repossessed. Make sure all the right steps were taken in the repossession of your vehicle. If they weren’t, an attorney with this area of knowledge can talk to you about steps you can take to recover your vehicle.
Contact me if you have questions and want to explore your options, consultations are free so you can get advice on the best course of action for you.