What Are My Options If The Bank is Going to Take My Car
If you have missed one or two auto loan payments, don’t panic just yet. You have options to stop the bank from repossessing your car. However, you need to act quickly. Whether you don’t have the funds to pay the full amount or simply forgot to send your payment, exploring your options with a South Carolina car repossession attorney to stop a repossession is key to mitigating the potential damage of a repossession.
You Can Pay Your Missed Payments
Having missed car loan payments does not automatically mean that you have defaulted on your loan. Lenders will typically inform borrowers when their loan is defaulted. Paying your missed car loan payments will involve paying missed payments and late fees.
You Can Reinstate Your Car Loan
If the bank has yet to repossess your car and you have technically defaulted on your loan, you can reinstate your car loan by paying all the payments you missed, including late fees. However, you should check your loan agreement to see if it includes a clause for reinstatement. Additionally, you can only reinstate a loan once.
You Can Refinance Your Car Loan
You can try asking your lender to refinance your existing car loan or extend its term. These options may be practical if the interest rate is lower than your original loan or if it reduces your individual payments. When considering these options, make sure you understand all the terms, penalties, and fees attached to the refinanced loan before you sign anything.
You Can Negotiate With Your Bank
If you have a buyer who can pay more money than what your lender is likely to get at an auction or dealer’s sale if they repossess your car, this might be a viable option. However, your lender may refuse this option for whatever reason. On the other hand, you might use your lender’s refusal as leverage to defend against a deficiency claim, particularly if your car was sold for less money than what your potential buyer was willing to pay.
You can also surrender your car voluntarily instead of dealing with the repossession process. With this option, however, you will lose your car, which is probably something that you don’t want to happen.
You Can File for Bankruptcy
If you are having serious financial issues and the options above just won’t work for you, you can file for a Chapter 13 bankruptcy or Chapter 7 bankruptcy to stop a repossession and get your finances in order. Bankruptcy will protect your car and other exempt property through the automatic stay, which will stop your lender from repossessing your car and selling it without permission from the court. It will also prevent your lender from claiming a deficiency balance.
Get In Touch With Our South Carolina Car Repossession Attorney Today
If you believe that your car is in danger of being repossessed, our South Carolina auto repossession attorney can work with you and your lender to determine the best way to stop a repossession. We can also help you get your car back if it’s been repossessed and check your financial situation to prevent a repossession in the future. Set up your appointment with our South Carolina auto repossession attorney by contacting us online or dialing 803-726-4888.
