If you fall behind on your car loan payments, the creditor will be allowed to repossess the car. How long this process takes depends on the creditor, how much you owe, how many payments you missed, and other factors. However, there are some potential ways to stop a car repossession if you act quickly. Maybe you have run into financial hard times and creditors are harassing you about this debt and other bills.
Options to Stop Car Repossession
One option is to pay all missed payments to reinstate the loan. If you can pay all of your missed and late payments to the creditor, you can possibly reinstate the car loan and continue to pay it off. Depending on where you live and the terms you agreed to, this could be a viable option to stop the repossession and keep your car. Maybe you borrow money or it works out that a tax refund or work bonus can help you bring things up to date.
Unfortunately, many people at risk of car repossession do not have the money to make all their missed payments all at once. If they did, they would not have fallen behind on their car loan payments in the first place. More likely this car payment is part of the overwhelming debt with which they are struggling.
If you are going to lose your car, then you may consider selling it yourself and using the money from the sale to pay off the loan and protect your credit score. You also may consider surrendering the car to the lender as that may not look as bad on your credit as having it repossessed. Either way, now you have no car and may not have money to get another less expensive car. It is a short-term solution and leaves you no way to get to your job!
Filing Bankruptcy May Be a Good Option
At the end of the day, losing your car may be just the tip of the iceberg. If you are in such difficult circumstances, you may want to consult with compassionate bankruptcy lawyers at Kain + Henehan, to figure out how to find a way out of your financial stress. Filing for bankruptcy allows you to get a healthy financial fresh start. People like you who fall behind to this degree usually come to it through unexpected circumstances such as a medical emergency.
Depending on the type of bankruptcy you file, you get to keep your house and your car. For example, the purpose of filing a Chapter 7 bankruptcy is to put you in a better financial situation than before filing and give you that fresh start. Talking with a qualified attorney about how to best manage your car loan in bankruptcy is a good idea.
Contact a Minnesota Bankruptcy Lawyer
If you are in financial trouble, consider talking about solutions to prevent losing your car, home, or other valued possessions with Minnesota bankruptcy lawyers Kain + Henehan. Call us at (612) 438-8006 or fill out the online form. We are here to help.
