Understand the Constant Threat of Car Repossession

When it comes to feeling that the threat of having your vehicle repossessed is looming constantly, you are bound to be feeling a lot of tension. Most of us depend on our vehicles to get to work, get groceries for our family, get medical care, and a whole list of other uses. Particularly in places without mass transit, having a dependable vehicle for your transportation needs can mean everything to you. The threat of auto repossession could mean the difference between being able to care for yourself and your family and provide for your needs or not. Fortunately, there is help available if you just know where to look.

Facts About Automobile Repossession

  • Automobile Repossession is a civil rather than a criminal matter
  • Ways to prevent repossession of your vehicle
  • Consequences of Repossession

Automobile Repossession is a civil rather than a criminal matter

Automobile repossession is governed by state laws, which vary from state to state, and depend to a great degree on the contract you signed when you purchased the vehicle. It is not a criminal matter, it is a civil matter. For that reason, law enforcement officers cannot get involved in the repossession of your vehicle.

Ways to prevent repossession of your vehicle

According to the law, the financier of your vehicle has a right to repossess if you fall behind in your payments. Repossession can take place sometimes as early as one day late on the payment of your vehicle, but it will depend on repossession laws in your state and the contract that you signed when you purchased your auto. There are several ways to prevent the repossession of your vehicle. Of course, the easiest way is to stay current on your payments, catch up on your payments, or pay off your vehicle prior to repossession. Of course if you were able to do that, you wouldn’t be worried about repossession at all. One way to prevent repossession is to declare chapter 13 bankruptcy. In fact, in most cases, if you declare chapter 13 bankruptcy, and your automobile has been repossessed, the law will require it be returned to you. Finally, probably the solution that works for most people is to find an alternate financier to refinance your vehicle, paying off the current note. Many times this can be done in a way to reduce your monthly payment to a more manageable amount, so you can stay current. A final alternative would be to get a cash back loan on your home or to get a debt consolidation loan to combine all your monthly payments, especially high interest credit card bills, into one single, lower monthly payment that you can handle.

Consequences of Repossession

The consequence of repossession, first and foremost, is that you will lose your vehicle. This could impact your job, your family, and even your health and well being. Further, it will reflect on your credit report, lowering your credit score. This can prevent you from getting credit in the future as well as even preventing you from getting certain jobs and having to pay higher insurance premiums.

In spite of all this, there are good solutions to your situation if you are looking at an auto repossession. Waiting will solve nothing. It is in your best interests to act now, use the easy online tools to help you resolve your looming auto repossession and get you back on track financially.


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