Having your car repossessed can honestly feel like the end of the world. Most of us rely on it for everything from getting to work to taking the kids to school. But don’t panic. There are steps you can take in a bid to get it back. So, how do you get a car back after repossession?
Step 1: Talk to the creditor
If your car has been claimed by the creditor then you may be able to negotiate to get it back. Do some research and find out whether you have any defenses related to the vehicle, the credit terms or repossession. If you do, you could find yourself in a very strong negotiating position.
Similarly, if the car is not worth much on the market then the creditor might no receive much for it. The creditor will probably negotiate an agreement with you.
Step 2: Can you reinstate?
A number of states allow consumers to reinstate the contract under certain circumstances. This will mean you will be able to reclaim the car and only pay the back-due payments. This is preferable because you won’t have to fork out the whole debt.
Be careful, however. There may be extra costs including storage charges and you may have to hand out an advanced payment or two. In most states in which reinstatement is allowed, you will only have a few weeks to claim your car — so make sure to act quickly.
Step 3: Pay the full debt
If reinstatement isn’t available in your state — or perhaps you have enough spare money going — you can redeem the car by paying off the full remaining amount and expenses. However, you will need to do this before the creditor sells your car. Because once it’s gone, it is gone.
Legally the creditor must tell you the date they intend to sell the vehicle and has to provide you with a telephone number where you can find out the cost of redeeming the car.
This option should be considered very carefully. If you have struggled to keep up with the monthly payments, it is likely that you may not be able to pay the full debt at once. Do not consider taking out expensive loans in a bid to keep the vehicle as this is a quick way to collect even more debt.
Step 4: File for bankruptcy
If you choose to file for bankruptcy then you will be able to reclaim your car — as long as the creditor has not sold it yet.
There are two options if you do want to take this route: chapter 7 or chapter 13 bankruptcy.
With the chapter 7 option, you will need to pay either the full remaining balance on the car or the vehicle’s value (whichever is less).
With the chapter 13 option, it is possible to set up a plan to pay off the car loan in monthly installments, up to as long as five years.
Step 5: Talk to your attorney
Our final option is to talk to your attorney. If you believe that your vehicle was wrongly taken then you could file a lawsuit to get the car back and receive damages.
If your car is repossessed it can feel like the end of the world. These steps on how do you get a car back after repossession will allow you to take back control. If you feel anxious or insecure about your ability to get your car back after a repossession, give us a call today!
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