Ways to Handle the Repossession of A Vehicle
Feb. 16, 2017
The loss of a personal vehicle to repossession can be an incredible setback for the livelihood of the affected individual. New York residents who lose their cars, trucks, SUVs, and vans to repossession may struggle to hold down jobs as they no longer have a reliable mode of personal transportation. Once a person’s employment is affected, they may discover that they no longer have the financial capacity to keep up with their other obligations.
There are several ways a person may choose to handle the repossession of a vehicle. They may first try talking to their creditor before they go into default on their car loan to see if the terms of the repayment agreement can be modified. For those who are unable to prevent a repossession before the fact, there are several other options they may be able to pursue.
After repayment of the delinquent sums and any late fees that attach, a person may be able to have their loan reinstated and receive their car back. They may be able to buy back their vehicle if the lender who repossessed it puts it up for sale. Either of these options may require the individual to come up with significant amounts of money and, therefore, may be prohibitive to some.
Finally, the loss of a vehicle to repossession may be remedied by filing for bankruptcy. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy offer individuals options for reclaiming their cars after they have been taken back by their lenders. To learn more about how to handle repossession of a vehicle through bankruptcy, readers are asked to contact their personal bankruptcy attorneys to discuss their specific cases.