Debtors who have fallen behind on their car payments are at risk for
vehicle repossession. Unfortunately, in their attempts to find out how they can save their
car from repossession, they are the victims of misinformation and outright scams.
Common Myths About Car Repossession
Below are few myths about car repossession that every debtor needs to know:
Myth #1 – Car finance companies have to wait until you are at least 3 months behind
on your payments before they can repossess your car.
Truth – Car finance companies have the legal right to repossess your vehicle
even if you are just one day late paying your bill. While it is unlikely
that a lender will send out the repo man just because you are a few days
late, the important thing is that they are not obligated legally to give you time.
Myth #2 – If I make a partial payment to the car finance company they do not have
a right to repossess my vehicle.
Truth – Partial payment on your car note is not full payment. Therefore the
unpaid portion is considered late. The lender still has a right to repossess
the vehicle for non-payment.
Myth #3 – The lender will be less likely to repossess my vehicle if I explain
what a tough time I’m having financially.
Truth – While it is important to communicate with your lender when you are facing
financial challenges, doing so does not guarantee that you will avoid
vehicle repossession. Debtors who want to work out some type of solution
with their lender must explain their situation, offer a solution and have
any agreements put in writing if they want to avoid car repossession.
Bankruptcy Can Legally Stop a Car Repossession
Remember, only bankruptcy can legally put a stop to a vehicle repossession.
If you find that you are unable to pay your car note because of other
debts such as credit card and
medical bills, you may want to consider a bankruptcy filing.
Avoid Repossession Today, Contact Us
If you would like to set up a free consultation with one of our bankruptcy
attorneys feel free to give us a call or fill out our
contact form today.