When faced with financial pressures, such as a potential car repossession, one has many options, including bankruptcy. At Utah Bankruptcy, our bankruptcy attorneys can walk you through when filing might be the right move to prevent your vehicle from being repossessed.
How do you know when you’re at risk for this, and what should you do in cases where repossession becomes unavoidable? Let’s find out the basics.
When Repossession Can Take Place
Laws here vary from state to state, but in general, a default (failure to repay a debt) on the vehicle is all it takes to instigate a repossession. Now, if you’ve never been late on a single payment before, with a perfect history? Don’t worry so much, your lender will likely work with you. But if this is a regular thing, you’re at risk for repossession.
The Repo Man
Most lenders outsource vehicle repossession to repo men, or repossession agents. These professionals can trace the location of a vehicle if it’s not at the listed address, and they’ll then wait until the car is left unattended before towing it. The car goes to an impound lot, where it will generally be held for 30 days to give you a chance to repay your loan in full, after which it will be auctioned.
Check Equity
If your car is repossessed, check your equity on your loan. Especially if you made a big down payment, you might be in line for a check based on equity you have – and if you had been more on top of this, you might have avoided repossession in the first place.
Other Details
A few other details to keep in mind:
- Don’t make it tougher by blocking your car or anything like that. This is just postponing the inevitable.
- Remove all your personal belongings if you’re at risk of repossession.
- Don’t get revenge by vandalizing the car – this just lowers the value at auction, and increases what you owe.
To learn more about repossession and how to avoid it, or for information on debt relief and how our bankruptcy lawyers can help you, speak to the attorneys at Utah Bankruptcy today.