How Does Car Repossession Work

How Does Car Repossession Work

Arizona City : AZ : USA | Dec 03, 2012 at 2:13 AM PST
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If you’re thinking about car loan refinancing as a way to avoid repossession, you want to make sure you conduct some research first. There may be other options available, so you don’t want to make a decision in haste. In order to have the time you need you should begin researching as soon as you realize you are in danger of losing your vehicle.

Refinance as a Way to Avoid Losing Your Car

Sometimes it’s easy enough to work out an arrangement with the lender when you are behind on car payments, but when car repossession is imminent there may be no other choice except refinancing the loan. You want to have time to research lenders before you make a final decision so make sure you allow enough time. Some of the information you want to discover during your research includes the following:

  • Interest rate
  • Repayment term
  • Additional fees if applicable
  • Repayment penalty if applicable
  • How repayment terms compare to other lenders

You may personally have other factors that are important to you, but these are the most common ones. For more information on refinancing your vehicle to avoid repossession visit our website at Credit-Yogi .

Repossession and Bankruptcy

A question that plagues many people is whether they can still lose their vehicle in repossession after they file bankruptcy. The answer to that question is a simple one: it depends whether you claimed the vehicle in your list of pre-bankruptcy debts. In order to avoid car repossession after bankruptcy the vehicle must be included on the list of debts you provide your bankruptcy attorney. In addition you are limited to the amount of equity you can hold in the car; too much equity and you may be forced to sell the vehicle and pay off the loan if you are filing a Chapter 7. On the other hand if you file bankruptcy and are able to secure a car loan, that vehicle is not exempt from repossession since it is post-bankruptcy debt.

Is Guaranteed Financing a Good Idea?

One thing that plagues many people with bad credit is whether they should seek a guaranteed car finance provider. Since these loans tend to carry higher interest rates than traditional loans, you may find your payments will be higher. On the other hand if you are in need of a vehicle and cannot obtain financing elsewhere, this can be a godsend. The key is to make sure you conduct research and don’t settle for what the dealership offers. Even these guaranteed loans are not all the same, but you may be able to find a lower interest rate than the lenders with which the dealer does business.

Car repossession is something you want to avoid at all costs even if it means finding a lender for car loan refinancing. If you are filing bankruptcy you must be sure you know the laws concerning car repossession after bankruptcy in order to avoid any unwelcome surprises. After bankruptcy or repossession you may need to obtain a guaranteed car finance lender. It is essential to make sure to conduct research in order to ascertain you receive the best terms available.

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adamstrang is based in Alabama, Alabama, United States of America, and is a Stringer on Allvoices.
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