REPOSSESSION: 7 Things You Need To Know

(1) What repossession is? Repossession is when your car or truck lender takes your car or truck because you are either: (1) Behind in your payments or (2) Have failed to keep it insured.

(2) No advance notice of repossession is required: There is often an assumption that the creditor has to tell you when it is going to take your vehicle. NOT TRUE. Unlike with judgments and foreclosures, the creditor will NOT GIVE YOU ANY ADVANCE WARNING that it is coming for your truck or car. You need to know this.

(3) You only have to miss one (1) payment: People tend to think that the creditor won’t come for their car or truck unless they are 2 or 3 or more payments behind. NOT TRUE. The creditor can take your car or truck the minute you miss 1 payment. Many times, the creditor will provide you some slack and wait until you are 2 or 3 payments behind. But that is NOT required. If you do get some slack, it’s because the creditor is hopeful you will catch up. Generally, the creditor wants your payments more than the creditor wants your vehicle. CAUTION: These days, with second hand vehicles selling for more money than before, which means creditors know that they will be fully paid is they repossess your vehicle, they are more likely to just take it than wait.

(4) Filing bankruptcy stops repossession: We do it all the time. One of the main reasons to file bankruptcy is to keep and protect your car or truck. Filing bankruptcy will stop the repossession. The best time to file is before your car or truck is repossessed. And, even if you decide or later decide to give up the car or truck, filing can buy you some extra time to figure things out.

(5) Filing bankruptcy can help you get your car or truck back: If your car or truck was just repossessed, most of the time, bankruptcy can help you get it back. But you can’t wait. There is no time to lose. If you come to us after your vehicle has already been taken, we would have to file you in bankruptcy almost immediately, before the repossession process gets too far along. This assumes that filing bankruptcy is right for you. And, a “rush” bankruptcy will only add to your stress. Besides, in the meantime, you will have to figure out how to live without your already-repossessed transportation. And, since the vehicle has already been repossessed, you will incur “repossession” costs on top of everything else.

(6) The costs of repossession: If your car or truck gets repossessed, there will be extra costs assessed to you. At a minimum this will include the fees the creditor pays to repossess your vehicle. These fees can be substantial and can quickly add up to over $1,000, and can include the following:

• · Towing and storage fees
• · Public auction fees.
• · County and city fees.
• · Attorney fees.
• · Court fees.

(7) What to do if you are behind on your car or truck loan:

· Don’t wait. Act NOW!

· Call a bankruptcy attorney: If you can’t catch up immediately, immediately call a bankruptcy attorney to see if filing bankruptcy is right for you. Maybe bankruptcy is right for you. Maybe not. But, since the initial consultation is always FREE, you have nothing to lose by finding out.

· Be super careful: It would be illegal for us to tell you to “hide” your vehicle, but the truth is that if the creditor can’t find it, the creditor can’t take it.

In North Carolina, we, the Law Offices of John T. Orcutt, would love to be the bankruptcy attorney you call.

If you find yourself struggling financially, being hounded by debt collectors and looking for a permanent debt-relief solution, contact the law offices of John T. Orcutt for a free consultation on getting out of debt for good.