Car Repossessions And The Process They Take |
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Hype Williams
SubmitYOURArticle.com
January 27, 2011
Hype Williams
http://www.seohaus.com
Car repossessions take place every day, and many people gethostile when their life line to work and play is being taken by their lender for not paying. In cases where the lender actually sends a tow truck for car repossession, there are things that you can do to stop your vehicle from being taken. While the lender does have the right to repossess your vehicle and can even come on your property to do so, a car repossession can only take place without disturbing the peace. Some people have blocked their vehicle from being taken by physically sitting in or on the car and refusing to vacate, as a individual sent to repossess a vehicle is not allowed to bodily force a person out of the way while seizing a vehicle. Car repossession laws vary by jurisdiction, so becoming familiar with the laws in your area is best when determining how to stop an auto repossession.
You can best stop car repossession by your creditor by immediately paying delinquent car loan payments and/or communicating with the lender before any negative action is decided.You will still be accountable for paying amounts originally agreed to in your contract however, as well as any additional fees assessed before the cars return. There are some lenders that will stop these negative proceedings if there is insolvency filed with the courts. This will keep your vehicle with you until proceedings take place, and that could buy some time.
Sometimes lenders will allow a forbearance, which is simply factoring your outstanding payments back into the total balance of the auto loan. This will extend the time you have to make payments on your car, but as long as future disbursements are made in a timely fashion, you can avoid involuntary vehicle repossession.Another way to stop a car repossession is to refinance the loan on the car. This may be done either through the current financer or through a new one. Often, because you now have less to pay on your total balance, this may reduce your monthly payments, while at the same time stopping any pending negative actions.
One last thing you can also do to help prevent anything like a repo from happening:Chapter 13 is a law that can prevent car repossession from happening. If your car has been repossessed but not sold by your creditor when the case is filed, the court may tell the creditor to return your car. With Chapter 13, interest charges can be reduced and monthly payments can often be lowered. In some cases, the balance due on the vehicle may be reduced to the cars market value, even if it is less than the loan value.
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