Car repossession is a very serious matter. Not only do you lose your vehicle,
but the damage to your credit report is also tremendous. When we purchase
and finance a car, remember that the fine print allows the lender to repossess
the vehicle due to “security interest.” Essentially, that
company holds a stake in the vehicle until you have paid it off. There
are no limits to how the lender can act, as well, provided that they are
not committing acts of violence or breaking into your home to repossess it.
After the vehicle is repossessed, the car will be sent to an auction right
away. You are still financially responsible for the difference on the
car, or in other words, the amount that you still owe.
You have a few options immediately following the vehicle’s repossession:
- Pay off the balance on the vehicle
- Negotiate with lenders to come up with a workable payment plan
It is always best to take preventative action well before you the threat
of repossession occurs. As long as your payments are made on schedule,
you are protected from actions by your lender. Even then, as the current
financial atmosphere is somewhat murky, some of us still find it difficult
to stay afloat.
I Can No Longer Make Payments. What Should I Do?
Know your lender’s policy. Most lenders will allow you at least 30
days before they have marked your loan as in default. However, these grace
periods will vary, so you must familiarize yourself first with your particular
Your other option would be to take the vehicle back to the lender. You
will not be on the hook for the costs incurred for repossession, such
as towing of the vehicle. This option also does not carry the stigma that
a repossession would have on your credit report. You may also wish to consider
bankruptcy if the amount to repay on your vehicle is too overwhelming.
Alexander Hilton & Associates can help you with all of your financial
and bankruptcy concerns. You do not have to drown in debt—we want
to help you stay afloat! Our Oklahoma bankruptcy lawyer has
over 20 years of legal experience and is known for getting our clients the right solutions.
Call our office at (405) 294-4330 and
request your free consultation.