Car Repossessions

Car repossession is where a lender can take back your vehicle legally because you have defaulted in some way on an auto loan or lease agreement. Typical ways to default include payment defaults and technical defaults. Payment defaults happen when you fail to make your payments for the car on time. Technical defaults can occur from lack of insurance, fraud, failure to pay taxes, unapproved modifications to car, and moving your car out of the state you reside in. Now that you know how you could get into this situation, here are some ways you can get out of it.

3 ways you can prevent car repossessions:

1. File for Chapter 13 bankruptcy fast! (30 days or less). When you filed, a stay is put in place that is automatic and this will stop all activities, which includes repossessions. You will then be able to restructure your debt and create a repayment plan that could include the funds necessary for your car loan.
2. Negotiate with your lender! Reaching out to your lender can sometimes bring a temporary reduction or even a suspension of your payments. This could give you the time to catch up.
3. Temporary solution until you can file for bankruptcy is keeping your vehicle in a private area. This includes a locked garage or an area on your property that is enclosed. In Louisiana, because these places are private, it is illegal for repossession agents to take your car. Although this is a temporary solution, we highly recommend filing for bankruptcy. And this is where we come in!

At Edwin Shorty & Associates, we understand the frustration that comes into play when your car or house may be repossessed. Contact us now so we can help you keep the things you love most.