When you buy a car, you sign a packet full of papers. Somewhere in that stack is a legal agreement stating that you will make the payment on time each month. If you don’t do this, then your lender has the right to repossess the vehicle.

Learn what options you have to avoid car repossession, and when you should call a lawyer.

Ways To Avoid Having Your Car Repossessed

When facing car repossession – whether it’s due to missing payments or something else – it’s important to know what options you have to avoid the repossession and keep your car. Some options are:

Call Your Lender: If your car is going to be repossessed, call the lender and find out why. This is especially important if you believe you are current on your payments because it could be due to another reason. Some other reasons can include if you do not have insurance on the vehicle, or perhaps there was a mistake on their end. Spending a few minutes on the phone can give you clarity and a path to keep your car.

Review Your Finances: Before trying to prevent repossession, first, make sure you can afford to keep the vehicle. Review your budget and ensure you can make the monthly payment and pay the necessary costs, like insurance and gas, to keep it.

Pay off the loan: The surest way to avoid having your car repossessed is by paying off the remainder of the loan you owe. Now, this is not feasible for most people, as it requires a large sum of money. However, you might have the funds, or be able to ask for a loan from a friend or family member.

Negotiate a Payment Plan: If you pay off your missed payments, you might be able to work out a new payment plan with your lender to reduce your monthly bill and make the payment more doable.

File for bankruptcy: You could file for bankruptcy before your car is repossessed. This will prevent the lender from selling your car and can buy you time to pay off the loan.

When To Call An Attorney If You’re Facing Car Repossession

When you’re facing car repossession, there are situations where you should consult an attorney. Some circumstances are:

• If your rights were violated: If you feel your rights were violated during the repossession, it’s essential to hire an attorney to learn your options.
• If damage was caused to your property: While workers have the right to enter your property to retrieve the vehicle, they do not have the right to damage your property. If any damages were caused, call an attorney to learn what options you have.
• If you left personal property in the vehicle: If you had personal property in the car when it was repossessed, call an attorney to ensure you get the items back.
• If your car was wrongfully repossessed: If you are current on your car payments and don’t know of another reason why your vehicle would be repossessed, hire an attorney to help you fight the repossession and keep your car.
• If the auction price doesn’t cover the balance of your loan: Even if your car is repossessed and sold at auction, the price it’s sold for might not cover the balance of your loan. If this happens, your lender could sue you to collect the deficiency. To avoid a deficiency judgment, you should hire an attorney.

Contact an Attorney

To learn more about what happens when a car is repossessed, it’s crucial to hire an experienced attorney to help you through the process. Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.