My Car was Repoed: What do I do Now?
If you have secured debts such as vehicle loans and you default on the loans, the creditor has the right to repossess the collateral if they can do it without disrupting the peace. This is why repossessions are often done in the middle of the night after you have missed two or more payments and the bank has threatened to repossess your vehicle. If your car has been repoed, our team can help.
What do you do if you wake up and your car is missing from your driveway? It depends on your financial situation and whether you really want your car back or not. In other words, is your car payment the only issue, or are you having significant financial problems overall?
Getting Back Your Vehicle
To get back your vehicle, you must make amends with your bank. This typically involves paying any past due payments as well as the cost of the repossession. In reality, the bank wants your money and not your car. In most states, you have a certain amount of time after your car is repossessed before they sell the vehicle to recoup their money. The creditor must hold on to the collateral for ten days prior to selling if they want to pursue a deficiency. That is why it is important that you contact them as soon as possible and make payment arrangements.
The longer you wait to contact your bank, the harder it will be to get your car back. But what if you do not have the funds to bring your loan current? What do you do if your repoed car is just one of the many financial problems with which you are struggling?
Using Bankruptcy as Leverage
If you are struggling with significant financial issues, bankruptcy may be a better solution overall. However, in order for it to be used to get your car back, you will need to file your bankruptcy as soon as possible after the repossession has taken place. This may also mean filing for Chapter 13 bankruptcy with a repayment plan before the sale of the vehicle takes place. This would be the best possible solution for getting your car back without having to come up with all of the money at once.
Bankruptcy will also allow you to decide which debts are the priority for repayment. If you are juggling payments and making your car payment has become increasingly difficult due to other debt, Chapter 13 bankruptcy will make your car debt a priority and you can focus on the other debts later. Lowering your vehicle payment may even be an option.
What Should My First Step be?
Unfortunately, losing your car being repoed can be the symptom of a much bigger financial struggle. If you need help determining what your best options are to help your finances, the attorneys at Cornwell Law Firm can help. We will discuss your debts and other aspects of your finances and help you determine what your best course of action is. We will also help you get your car back if that is what you want to do and if it is a feasible option for your situation. Contact our office today to schedule a consultation and let us help you get back up on your feet financially.