- Free Consultation: (202) 448-5136 Tap Here To Call Us
How to Prevent Vehicle Repossession
If you fall behind on car payments, you run the risk of repossession. Some lenders are quicker than others to repossess, but most wait until the third month of non-payment. There are several methods to prevent vehicle repossession.
Your lender may warn you via correspondence that repossession is possible. But no lender will warn you beforehand that they are about to take the vehicle. The repo man wants to repossess without confrontation.
How to prevent vehicle repossession
Get caught up on your payments. Prioritize your vehicle payment over medical bills, credit cards, and other types of unsecured debts. To come current, you will also need to pay any late fees and added penalties. You are not fully caught up until your balance is zero. Curing the default is the surest method to stop a repo.
Negotiate with your lender. Many lenders allow one or two missed payments over the life of a loan. Missed payments will not simply be forgiven. Instead, your lender may “tack” them on to the end of your loan. Many lenders also offer payment deadline extensions and catch-up plans. If you are unable to make your monthly payment, contact your lender and see what options they have to offer you.
Sell the vehicle. If you can sell your car before it is repossessed, invariably you will obtain a better price than the lender will get at a repossession auction. You will also avoid having to pay for the repossession costs, storage, and other miscellaneous auction expenses.
Voluntarily surrender the vehicle. If you are able to obtain an anti-deficiency agreement with your lender, voluntarily surrendering the vehicle may make sense. Do not, however, simply hand over the vehicle to your lender without obtaining an agreement in writing. While you may save some of the costs of repossession (like towing charges) you waive many of your defenses in a later deficiency lawsuit.
File for bankruptcy protection. Once you file bankruptcy, no creditor can take any action against you or your property. That includes repossession. Unless you are able to come current on the payments, a Chapter 7 bankruptcy may not prevent vehicle repossession for more than a couple of months. But a Chapter 13 bankruptcy allows you to spread out the missed payments for as long as five years.
Once a repossession takes place
Even after a repossession has taken place, you may be able to get your vehicle back, but you must act quickly. Filing bankruptcy before the creditor sells the vehicle will stop any scheduled auction and allow you to get the vehicle back. But you will need to make arrangements for payment on the loan. Only bankruptcy can force a lender to return a repossessed vehicle.
After the vehicle has been auctioned off, there is no way to get it back. If the auction proceeds turn out to be less than the amount you owe, then your creditor will file a lawsuit against you to obtain a deficiency judgment. At that point, your credit report will show both a repossession and a lawsuit.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
