Plenty of people have been in this position: They can’t make their car payment on time, but they need to go to work to earn the money to pay their bills. They know that a repossession is possible, but so long as they move their vehicle or put it in places where it isn’t obvious, they know they’ll have a way to get where they need to go.
Hiding your vehicle in hopes of not having it repossessed is an option, but it isn’t likely to work for long. The lender is going to send people to find your vehicle, and it will cost you more the longer it takes. Why? The lender will charge you for the cost of repossession, too.
So, if you can’t hide your vehicle, then what can you do to prevent them from taking your vehicle?
Talk to your lender as soon as possible
When you know that you can’t make a payment on time, it’s vital to call your lender and talk to them about your options. Some lenders will give you a grace period. Others may have options to skip a payment due to job loss or other major life changes.
If you don’t call, you won’t find out the best options open to you. At worst, they’ll tell you there is nothing they can do for you at the moment.
Avoiding repossession
You have another option, which is to avoid repossession by talking to an attorney. They may be able to help you negotiate down your monthly payment and extend your loan, so that it’s more affordable for you. They might be able to assist you in consolidating your debt into an easier monthly payment.
They may also be able to help you with a Chapter 7 or 13 bankruptcy. With either one, creditors cannot repossess your vehicle. There is a hold on all collections activities until you come up with a plan for handling your debt in court. With a good bankruptcy program, you may be able to eliminate past-due payments or come up with a repayment plan that will work for you moving forward.
