Do you need your car to get around, but are behind on your payments? Unfortunately, if you are unable to pay your car payments, the lender will repossess your car. However, there are ways to avoid this situation from happening. The attorneys at Skrupa Law Office, LLC in Omaha and Lincoln want to tell you about the options you have. Every option will not be viable for everyone so take your time and choose the best one for you.
1. Reestablish the Loan
You can avoid a repossession or get the car back after a repossession by reinstating the loan that is in default. With reinstatement of the loan you have to make up the missed payments and late fees in one lump sum. Not all loans offer this deal, so check with the bank first to see if this option is available for you. Also if this option is available, you must take advantage of the option right away. There is usually limits on the amount of time you have to cure the default and reinstate the loan.
2. Work Out a Deal With the Creditor
You can go to the creditor directly and try to work out a deal. The creditor may let you sell the car yourself because you could possibly get more money out of it than at an auction. Or if you are if default of your loan, you could surrender the car in exchange for a wave of all late payment fees and penalties.
3. Make up Late Payments
Just because you are late on a payment does not necessarily mean the creditor will repossess the car. If you are not in default yet, the easiest way to prevent a repossession is to pay all the money due up-to-date including all late charges and other fees. Read your loan agreement to make sure you are not in default yet or call the loan company to make sure.
4. Refinance the Loan
The creditor is sometimes willing to refinance the car for a longer period of time in order to lower the payments or you may be able to find another creditor that is willing to refinance it for you. If you are thinking about refinancing, Skrupa Law has come up with some questions to ask yourself first.
- Is the car worth refinancing?
- Is the interest rate lower than the original loan?
- Are there any fees or penalties for refinancing?
- Will you have to make a payment upfront with the new loan?
5. Redemption of the Car
You can get your car back, if you pay all of the outstanding balance of the loan including repo fees, storage costs, and any other cost that may be involved. However, we know this may not be a realistic event. Although, if the balance is small and you could sell the car for more, then it could be worth it.
6. Bankruptcy
Bankruptcy may be the best option for some people to stop a repossession because they are not able to catch up on their loan to date. Chapter 13 Bankruptcy may be an option for you to stop repossession or get a repossessed car back. Call Skrupa Law to determine if a Chapter 13 bankruptcy is right for you.
Contact Skrupa Law Today at (402) 512-6094 in Omaha and (402) 464-3311 in Lincoln
No one wants to get their car repossessed. Our bankruptcy lawyers at Skrupa Law in Omaha and Lincoln don’t want it to either. We want to work with you and get you back on top of your car payments. If you have any questions concerning repossession or bankruptcy; contact our Omaha office at (402) 512-6094 or in Lincoln at (402) 464-3311.