A car repossession is most people’s financial worst case scenario. It is possible to stop a repossession, but you have to understand the DOs and DON'Ts of how to halt the process. Keep these important facts in mind while you attempt to stop a repossession of your car.
The DOs
DO Prevention and Communication
The best way to stop your car from being repossessed is prevention. As long as you keep up with your required payments, you never risk losing your car to lenders. In the event you can’t make a payment on time or in full, the best thing to do is get in touch with your lender and explain the situation. Communication can help stop an impending repossession before it begins. Many finance companies, banks and other lenders are willing to work with customers, since continuing to collect interest and principal payments is better business than simply repossessing the vehicle and liquidating the asset.
DO Know Your Rights
Even though you (hopefully) reviewed the terms of your car loan before signing the contract, you should know your rights and look at the specific terms that apply to the consequences of missing structured loan payments. A familiarity with the loan term language will help you protect yourself from having your car repossessed and provide insight into how to stop a repossession that has already been set in motion.
The DON'Ts
DON'T Wait for Court
Once you have been assigned a court date or received any official documentation from the court system, it is most likely too late to stop a repossession. It may provide a temporary relief of stress to ignore missed car loan payments and a possible repossession, but sitting back and allowing the process to begin will make it nearly impossible to retain ownership of your vehicle.
DON'T Withhold Partial Payments
You should not withhold a partial payment just because your lender has initiated repossession proceedings. A number of civil court judges, which is the kind of judge who would preside over a repossession case, view a lender accepting a partial payment as an agreement settlement. Essentially, by allowing you to resume making payments, some lenders may be waiving their right to take your car. Make an attempt to pay at least some of the defaulted payments before resigning yourself to the repossession process.
The basic guidance you should follow when trying to stop a repossession is taking control of the situation as best you can. Do not ignore the issue; instead, communicating with your lender can hopefully retain usage of your car.
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