Do You Have Any Idea on Voluntary Repossession?
If you have missed out your car payments it can be repossessed. It does not depend on voluntary or non-voluntary, repossession will affect the credit score. However, there are some of the advantages of a voluntary repossession because it gives a major control on the situation. If you want to take advantages of it, start taking initiatives before you miss payments. If you have a financial issue and anticipate upcoming financial problems, you can try to mitigate everything calling a bankruptcy attorney in Edmond, OK.
Missed out Car Payments?
Missing your car payments will put you in a vulnerable condition where your creditor has the legal authority to repossess your car. An involuntary repossession is humiliating and inconvenient also. But following some of the steps, you can skip it all.
Bankruptcy Filing – you can file for bankruptcy under Chapter 7 or Chapter 13; therefore, call a bankruptcy attorney in Edmond, OK. A successful filing by your attorney will put a hold to the repossession when the case is already open. If your creditor is unwilling to go to court, spend money and time to get an overturn on the stay, you can get a relief.
Negotiation – If financial conditions are not very serious, you may try to negotiate with the creditors other than filing for bankruptcy. It may take one or two months to get back on track. You can go to the creditors and elaborate your situation. Sometimes, creditors may reconstruct the payment planning.
Voluntary Repossession – If creditors do not agree with your negotiation terms or your late payment does not go well with them, you can offer for voluntary repossession. It is the last option to convince creditors to settle with the debt again or to reduce it. It works most of the time because it helps the creditors to reduce the cost of hiring a credit collection agency or involuntary repossession.
Whatever it is, your credit score will have the mention of repossession whether it is voluntary or involuntary and it will affect your credit score. When your creditors repossess your car, they will eventually sell it to repay the loan. Whatever loan balance will be left that is known as deficiency balance, you have to pay it off.
If the entire process seems tough to you, come to a bankruptcy attorney in Edmond, OK. We would help you to determine whether bankruptcy filing or voluntary repossession is preferable for you. To ease out your financial trouble Chris Mudd & Associated is always there for you.