There is little else as stressful as knowing that creditors are getting anxious about receiving their payments and have threatened repossession of a vehicle. For many people in Ohio who are stuck in this inconvenient predicament, feelings of anxiety and anger may be soaring. In preparation for the worst, people may benefit from at least understanding how the process works, as well as which alternatives are available to them in avoiding a repossession entirely.
According to the Federal Trade Commission, creditors are under the legal right to repossess any vehicle in situations where people have defaulted on their loan by refusing to make a payment regardless of whether or not it was intentional or due to a lack of adequate finances. When people know they will be unable to abide by their contract and make their payment on time, they may be able to negotiate the terms of their contract, but any changes should be received in writing.
Once a car has been repossessed, the creditor has the option of whether or not they will keep it or sell it. In these cases, they are required to contact the owner and allow them to retrieve any personal property from the vehicle before preparing it to sell. People may also be able to inquire about getting their loan reinstated. However, if they fail to make payments a second time, those types of arrangements may not be as readily accessible.
Autofinancing.net suggests that people consider trying to renegotiate the terms of their contract, contact friends and family for financial assistance and even returning or selling the car if they are facing potential repossession.
Can bankruptcy help?
Another option for someone facing possible car repossession is bankruptcy. In fact, there are several reasons why bankruptcy can help. For instance, if your car has already been repossessed, a Chapter 13 bankruptcy may allow you to get your car back, so long as you stick to the Chapter 13 repayment plan.
However, this is just one way in which bankruptcy can help. If you would like to learn more, it is best to seek professional guidance.