Repossession is a scary concept. One day, you are on your way to owning a car outright. The next, a financing company is breaking down your door or blowing up your phone demanding money. If you do not pay the company, you risk losing your car. Financing companies have the right to tow your car away if you do not pay the bill.
You face repossession if you fall behind in payments or otherwise violate the contract you signed with the creditor. The car is seized as collateral and sold, usually at auction, to cover the amount you owe.
Are you facing repossession of your vehicle? Are you afraid you might lose your car and the money you have paid on it? Read on to learn more about the do's and don'ts when you face repossession of your vehicle.
Do Not Hide
Unfortunately, hiding from your debts will not help you. Hiding the car could result in criminal charges.
Some people try to hide their vehicle in the garage or a storage shed in the hopes the lender will not be able to retrieve it. A judicial process will ultimately allow the lender to retrieve the property regardless of where you store it.
Do Consider Bankruptcy
When you initiate bankruptcy proceedings, creditors are not legally allowed to repossess your car, at least right away. If creditors have already repossessed your car, you may be able to get it back if you file before the car is sold.
Bankruptcy allows you to lower your payments and reduce the interest rate you have left on your balance. While your credit will take a hit, consider at least speaking with a bankruptcy attorney so you can understand the benefits of filing.
Do Not Fight With Fists
The creditor has the right to come on to your property to tow the car away, so trying to use force is not going to prevent repossession. In fact, force might even make the creditor less likely to work with you. If you try to fight the individuals who come to repossess your car, you will surely find yourself facing criminal charges. If the cops are called, it could complicate the process further while still leaving you without a car to drive.
Do Ask for Personal Belongings
While the lender may not automatically reach out to you to return any personal belongings you have left in the car, you have the right to ask for them back. You may be asked to pick up the items or the lender may send them to you.
Do Hire an Attorney
Even if the creditor takes your car back, the creditor may sue you in the future. Lawsuits are especially common if the creditor does not receive enough money to cover the amount you had left to pay on the car. You need an attorney to help you understand your legal options and so you can make better decisions for the future.
An attorney can also represent you in challenging the rights of the creditor to retrieve the car. Perhaps your payments are on-time and there is a mistake. The lawyer can also renegotiate your loan or take action against a lender who did not provide you with proper notification of the issue.
You do not have to deal with an unsure financial future. Attorneys are available to help you manage your finances and ensure you are going about the process of managing your money legally. Call Custer, Custer & Clark LLC today to set up a consultation with a compassionate attorney who can help with your unique car repossession situation.