You may not even realize how much you depend on your car. Certainly, you complain about the gas you put into it, the cost of insurance and the ongoing maintenance, but your vehicle is responsible for getting you to your job and allowing you to fulfill many other obligations. Without your car, your situation may become dire.

Nevertheless, there is no question that the car payments are a burden. In fact, you may have fallen behind due to a variety of reasons. You feel certain you will be able to catch up, and you hope the lender will be patient while you figure out a financial solution. You may want to be aware of the consequences of falling into delinquency with your car payments.

How does repossession work?

If you have received a notice from your lender that you are late with your payments, the clock may already be ticking. On the other hand, some creditors don’t bother to notify you when they have decided to repossess your car.

Repossession is an unpleasant experience, to say the least. Your lender probably has an Ohio repo company contracted to do the dirty work, tracking down the vehicle attached to the delinquent payment and towing it to an impound lot to prepare it for auction. Repossession typically takes place at the most inconvenient times, such as when you are at work or in the middle of the night. It is often embarrassing when neighbors or co-workers see it happening.

How can I avoid repossession?

It is possible to negotiate with some lenders when you fall behind. It helps to contact them as soon as you realize you will miss a payment. Creditors appreciate your proactive steps and may be willing to work with you, perhaps even modifying your loan, to avoid the trouble and expense of repossessing your vehicle. However, negotiation may not always work, or you may simply have no means with which to negotiate. In that case, your alternatives may include:

  • Selling your vehicle privately
  • Volunteering your car for repossession
  • Defaulting on the loan

None of these options allows you to keep your vehicle, and losing your car may create more difficulties for you if you are unable to get to work to make money. If you are in such a situation, you may feel it is time to contact an attorney to discuss the option of filing for bankruptcy.

Through bankruptcy, you may be able to halt any repossession actions, protecting your car and your transportation to work. An attorney can provide you with guidance and assistance as you seek relief from the burden of your debt.