What to Do If Your Car is Repossessed?
If you finance a car purchase with a loan, you will sign a contract stating that your car serves as collateral for your loan. That means that if you fail to make your payments on time, your lender has the right to repossess your car. Your lender may sell your repossessed car to pay off your debt or part of the money you still owe them.
Falling behind on your car loan payments will negatively impact your credit score, which can make it more difficult or costly to take out a loan in the future. You may also have to pay higher insurance premiums and have the repossession included in your credit report for seven years or more.
Fortunately, you have some options to get your car back. Depending on your specific situation, you may require legal guidance from a South Carolina auto repossession lawyer to get your car back after it was repossessed.
You Can Pay Off Your Car Loan
Once your lender has repossessed your car, they will send a letter stating that you have the right to redeem your car. The letter should include details about your options for redeeming your car. In most cases, redeeming a car after it has been repossessed will require you to pay off your loan balance, including collection fees, late fees, and repossession costs, such as towing fees, repair costs, and storage fees, among others. Once you’ve successfully redeemed your car, you will get your car back and own it outright.
You Can Buy Your Car Back
You can bid on your car when your lender sells it at an auction. However, it’s crucial to note that you may still be liable for the deficiency balance if you purchase your repossessed car at an auction.
What an SC Repossession Lawyer Can Do For You
Did you know that a repossession may sometimes be illegal? If you believe your lender has repossessed your car unlawfully, you should discuss your case with a South Carolina auto repossession lawyer right away. Your lawyer can determine if the actions of the repossession agent were unlawful and know the best way to resolve the issue, whether by negotiating with your lender or filing a lawsuit against them, to get your car back. Below are situations when a repossession may be unlawful:
- You are up-to-date on your car loan payments.
- You were late on your payments before, but your lender was fine with it.
- You lost personal items when your car was repossessed.
- The repossession agent violated a law, such as breaching the peace, when repossessing your car.
- Your lender repossessed your car because you didn’t have insurance coverage even though you had coverage.
Your South Carolina car repossession lawyer can also help you file for Chapter 13 bankruptcy if you want to get your car back but can’t afford to pay off the entire loan or buy it back.
Seek Legal Advice From Our South Carolina Auto Repossession Lawyer Today
You have several options to get your repossessed car back, and our South Carolina auto repossession lawyer at Reed Law Firm can help you determine the best one based on your specific needs. Contact us online or call 803-726-4888 to schedule your consultation today.
