Every person dreams of buying their own vehicle. Most of them consider taking a loan to fulfill their dream. But sometimes, due to some financial constraints, timely repayment of loans becomes impossible, which eventually leads to vehicle repossession by the lender. This can, however, be prevented by seeking help from an experienced bankruptcy attorney from the law office of Corey L. Mills.
Although a detailed discussion with an attorney will provide one with valuable tips to prevent vehicle repossession, here is some information that one might find helpful.
Ways To Prevent Vehicle Repossession:
Filing Bankruptcy: If one wants to secure protection from various types of debt collection, including vehicle repossession, filing bankruptcy under chapter 7 or 13 would be the best option. Consult with a bankruptcy attorney to learn about the impact of both on the vehicle loan. If vehicle retention is on the mind, then Chapter 13 would be the best fit, as Chapter 7 will offer limited protection for the vehicle.
Rescuing The Car:
In case the vehicle has already been repossessed, one entertains all the right to redeem it until it has been resold. For this, one must repay all the remaining amount, along with any late fees, if any, and take back their vehicle from the hands of the lender.
Negotiating With The Lender:
A meeting with the lender for negotiation might also be effective in such an unprecedented situation. This will help one find options for clearing or lowering debts without giving away the vehicle.
Modification Of The Loan Terms:
If monthly payments are too high according to the loan terms, then one can consider modifying the amount after negotiating with the creditor. If the creditor is reluctant to offer such benefits, one can search for another lender who would agree to the repayment terms at reduced monthly installments.
Impact Of Filing Bankruptcy On Repossession:
Most people consider the method of filing for bankruptcy to prevent vehicle repossession. This is because the automatic result of filing a bankruptcy is the issuance of a stay which protects the individual from the collection of debts by the creditors. The legal stay bars the creditors from establishing contact with the individual, continuing a lawsuit, or repossessing the vehicle. As long as the stay is in place, one can stay relieved from the pressure of vehicle repossession.
Final Thoughts:
For such legal matters, consulting an attorney would be the best choice who will offer the appropriate guidance on how to tackle such an unprecedented situation and ensure that the vehicle is protected.