Do You Have Any Idea About Voluntary Repossession?

If you have missed out on your car payments it can be repossessed. It does not depend on being voluntary or non-voluntary, repossession will affect the credit score. However, there are some advantages of a voluntary repossession because it gives you major control of the situation. If you want to take advantage of this, start taking initiative before you miss payments. If you have a financial issue and anticipate upcoming financial problems, you can try to mitigate everything by calling a bankruptcy attorney in Edmond, OK.

car payment due

Missed Out Car Payments?

Missing car payments will put you in a vulnerable position, where your creditor has the legal authority to repossess your car. An involuntary repossession is humiliating and also inconvenient. But following some of the steps, you can skip it all.

Filing Bankruptcy – you can file for bankruptcy under Chapter 7 or Chapter 13; when doing so, call a bankruptcy attorney in Edmond, OK. A successful filing by your attorney will put a hold to repossessions when the case is opened. If your creditor is unwilling to go to court or spend money and time to get the decision overturned, you can get relief.

Negotiation – If the financial conditions are not very serious, you may be able to try negotiating with the creditors instead of filing for bankruptcy. It may take one or two months to get back on track. You can go to the creditors and elaborate on your situation. Sometimes, creditors may reconstruct the payment plan.

Negotiation

Voluntary Repossession – If creditors do not agree with your negotiated 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 the debt 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 you choose, your credit score will have the mention of repossession whether it is voluntary or involuntary and it will affect your credit score. When creditors repossess your car, they will eventually sell it to repay the loan. Whatever loan balance is left after the sale, you have to pay.

If the entire process seems tough to you, come to a bankruptcy attorney in Edmond, OK. We will help you to determine whether filing for bankruptcy or voluntary repossession is preferable for you. To ease your financial trouble Chris Mudd & Associated is always there for you.

** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.