Repossession is not a fun thing. Losing your car, truck, motorcycle or boat can be embarrassing and inconvenient.
But just like anything in life that people hope to avoid, there are a few misconceptions that the general pubic has about the process of repossession.
If you find one of your vehicles in danger of being repossessed, the best weapon is knowledge. With that, you will be able to make informed decisions.
Repossession Myth #1: My vehicle can’t be repossessed until I’m at least 2 months behind on payments.
This is absolutely untrue. While bill collectors generally wait until at two or three months worth of missed payments, they can take your vehicle away if one payment is one day late.
What to take away from this fact is that it’s never a good idea to upset your lenders. Yes, not paying bills on time will upset them, but don’t add insult to injury.
If you call to explain your situation, don’t lose your cool and chew out someone that isn’t sympathetic to your circumstances. Lenders opened shop to make money, which is the same reason that you go to work each day. Upsetting your lender will not help you cause.
Repossession Myth #2: I can’t do anything to stop it besides paying what I owe.
People have a tendency to feel helpless and distraught when facing repossession and are unsure of what to do next, if anything can be done.
The worst thing to do should you find yourself in this situation is nothing. If you wait until the lender has already repossessed your vehicle, then it may be too late to do anything.
One option to consider is filing for bankruptcy. Federal laws allow you to keep your car 100% of the time if:
- You file a Chapter 13 bankruptcy,
- You need the car,
- The car is not an unreasonably high priced vehicle, and
- You can afford to pay your required Chapter 13 plan payments.
If you just need more time to make your payments, then Chapter 13 bankruptcy can help you, lowering your monthly payments.
Again, filing for bankruptcy is just one option. What you need to do is learn about your options and take action before it’s too late.