How to Get Back a Repossessed Vehicle

 Posted on May 25, 2018 in Vehicle Loans

In the United States, 170 million consumers depend on a vehicle for daily activities. From trips to the grocery store to a daily commute to work, Americans rely heavily on having independent transportation. Unfortunately, when financial hardship strikes, lenders are quick to repossess their vehicles, even if payments are only one month behind, in some cases. The next part of ur “Surprising Benefits” series explains how filing for bankruptcy can stop a repossession from occurring or even return a repossessed car back to your possession.

If It Is Still in Your Possession

In the state of Texas, repo agents do not need to notify you before taking your vehicle. Realistically, if your payment is in default, even just by a short time, a repossession agency may already be looking for your car, truck, motorcycle, RV, or any other vehicle burdened with a loan. Filing for bankruptcy may be a viable solution to your situation. Bankruptcy places an “automatic stay” is on all collection attempts for all loans, including your vehicle. For many Americans, this stay is enough to catch up on payments, without including it in the bankruptcy process.

After It Is Repossessed

If the car is already repossessed, there is still a possibility of having the vehicle returned; but you must act fast. Lenders work quickly to send the repossessed cars to auction and often have them sold within two weeks. Once the vehicle is sold to a third party, it is too late to have it returned, and you may still owe money to your lender. Typically, the amount the car earns at auction goes toward the original loan balance and the debtor is responsible for the difference, which will include interest and repossession fees. Filing for Chapter 13 bankruptcy stops the sale of the vehicle, renegotiates the terms of the loan over the next three to five years, and returns the car to your possession. A lender may still hold the debtor responsible for the repossession fees. However, many find that preferable to losing the car entirely and still owing.

Ask an Attorney

If your vehicle loan is in default, there is a possibility that you are up for repossession. Depending on the bank and your past payment history, you may have a more extended amount of time, but this is not guaranteed. Stop the guessing game today by contacting a Schertz, TX bankruptcy lawyer. Law Offices of Chance M. McGhee understand how frustrating it is avoiding collection calls and the damaging impact losing a car can have on your career and your ability to put food on the table. Call us at 210-342-3400 today to schedule your free, no-obligation consultation to further explore your vehicle-saving options.

Sources:

https://hedgescompany.com/automotive-market-research-statistics/auto-mailing-lists-and-marketing

https://www.citylab.com/transportation/2014/02/9-reasons-us-ended-so-much-more-car-dependent-europe/8226/