If you are facing automobile repossession, you are most likely wondering if you have any other options. How can you keep your car?, there are several ways to avoid repossession and get your life and your financial standing back on track.
Read Your Loan Agreement Carefully
You may assume that you are in default of your loan simply because you have missed a payment. While some loan agreements do state that default begins after a single day late, most are not so strict. Many give you up to thirty days or even longer after your payment is due before you’re turned over to default status. What’s more, you may not technically be considered in default until you receive written updates from your loan company informing you that you are. Check with your company and read your loan agreement carefully.
Ask About Reinstatement
If you are in default already, you may be able to reinstate your loan. This will allow you to prevent repossession of your vehicle, and – if you have already lost it – to get it back. To reinstate the loan or “cure your default”, you will need to make one lump sum payment of all past due to payments, including any relevant fees, late charges, etc. Be sure to check with your loan agency again, though, as not everyone has the right to reinstate defaulted loans.
Other Options
There are several other options for avoiding or pausing the process of automobile repossession. These include:
* Negotiation with your creditors.
* Offering to sell the car yourself, rather than allowing it to be sold at a public sale or auction.
* Redemption, which involves the payment of the entire remaining balance of the car loan, plus any applicable fees, etc.
* Declaring bankruptcy.
Some of these options are quite drastic, and should only be used as a last resort. If you need help deciding what to do, consult an attorney. Clients in the Portland, Oregon area can consult the office of Christopher J. Kane for more information about repossession and how to navigate and avoid other financial issues.
