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How To Stop A Car Title Loan Repossession

By sbanderas | July 16 2019
220

Thе single most effective way tо stop repossession is to keep in constant contact with your finance company. Though you may be tired of the constant calls and letters? If they respond to any communication sent by your finance company, they’ll probably back off. Why? Because they know you’re willing to work with them to stop repossession. 

How To Stop A Car Title Loan Repossession

How To Stop A Car Title Loan RepossessionOnce your account is sent to collections? Your name typically comes up on their list of people that are in the areas. These lists are divided by people who are significantly behind on their payments.  Collection agents will, at times, go down the list. They then make calls and mail continuous letters until contact has been made. If you respond for the first time they attempt to contact you?

They’ll usually note your account and remove your name from the list. At least until the action that was supposed to take place occurs.

If your payments still aren’t current? Your name will come up on that list again. The finance companies truly keep notes on everything! So, if you contact them prior to contacting you? Your name might never appear on the dreaded list at all. Keeping in contact with your finance company from the beginning will likely buy you at least several months. In this time period, you can arrange to make payments and get the loan under control. You might even be able to stop repossession!

Let the Finance Company Know Your Situation

Many people often wonder, “How to Stop a Car Title Loan Repossession.” Most the time, however, telling the finance companies the reason your unable to make the payments, they’ll allow you extra time. Take advantage of their generosity.

If you know you won’t be able to pay for up to 3 months? Let the finance company know! Have them tell you what your options are and what they can be. Tell them you’re short on cash for about 90 days and if there’s anything that can be done. Chances are? They’ll work with you if you stick to your word. If something comes up and you can’t pay the 90-day mark? Call them well ahead in advance to let them know. Going past 90 days without paying, you probably shouldn’t bother to contact them. They probably will not cooperate with you in the future.

How Can You Prevent and How to Stop Title Loan Repossession

How Can You Prevent and How to Stop Title Loan RepossessionThe best idea in this scenario is to only take out a car title loan if you know for a fact that you can repay the loan balance in full. Especially by the first due date. After all, you likely depend on your car and don’t want to put it at risk! You also may not want to incur additional interest charges and fees if the loan rolls over. However, many people take out a car title loan with out having a repayment plan.  If you’re included in this group? You might want to know how to get out of a title loan.

You have a few general options available:

  • Repay the Loan in Full
  • Sell Your Car
  • Have Your Car Repossessed

What Happens if Your Car is Repossessed?

All of these options will help you avoid a title loan repossession. Keep in mind that a vehicle repossession will strip you of your car without notice. You mat be heading out the door to work and discover your car is no longer there as needed. Any equity that was on the vehicle is officially gone. In addition, repossession holds negative on your credit rating. That, in turn, may remain in place for seven years or long. This can make it truly difficult for you to obtain financing in the future. This includes if you need to apply for a new car loan. It’s best to act quickly to deal with the car title loan before title loan repossession occurs! Read more about car repossession from https://www.thebalance.com/repossession-when-the-bank-takes-your-car-315103.

How Long Until Your Car is Repossessed?

How Can You Prevent and How to Stop Title Loan RepossessionIf you have a car title loan that you can’t repay? Wondering how long before title loan repossession occurs is often asked about. Title loan regulations permit the title lender to repossess the car as soon as default occurs. Keep in mind, you must repay the entire loan balance to avoid foreclosure. 

You could potentially repay most the title loan. But, the lender could repossess the vehicle if you default. That’s on any portion of the amount due! If you’re facing a pending due date? It’s best to plan the rollover with you auto lender as soon as possible. Or, develop a plan for repayment! 

Rollover the Loan

If you choose to rollover the loan to buy additional time? Only do so if you know you can develop a plan for repayment. Or, you can sell the car before the next rollover period. Remember that each rollover costs additional money. And, it increase your risk of repossession!

What Can You Do if Your Car is Repossessed?

title loan repoIf you have never had a vehicle repossessed, it’s likely you don’t know what to expect. The auto lender will not schedule repossession dates. They do, however, contract with a third part to collect the vehicle. This may be from your work or home, and it may be at any hour on any given day. The third party will not knock on your door or notify you of the auto repossession. Instead, they’ll just go ahead and tow your vehicle away.

Upon discovering auto repossession, you’ll have the option to attempt repayment to the lender before the car goes on auction. This, however, is not always successful.

You’ll need to have access to the full amount of funds available to pay off the loans. All fees, too, will be needed in order to proceed with this option. In most cases, repossession means that you’re instantly without a vehicle. And, you will need to make alternative choices for transportation. You should be prepared to deal with the face that your credit rating will plummet, too!

Common Lender Myths About Vehicle Repossession

Auto loan delinquencies have been steadily decreasing since the beginning of 2012. There are a number of theories as to the cause of this trend. Having a car is absolutely crucial to the financial well-being of most American consumers. The phrase, “No Car, No Job” is a common catchphrase. Even so, there are those facing repossession and now know a bit on how to stop a car title loan repossession. Most consumers aren’t aware that a vehicle repossession is just as damaging for the auto lender as it is borrower. 

Things Lenders Should Consider Before Repossessing a Car

  • Shift in Income

Things Lenders Should Consider Before Repossessing a CarSome borrowers are simply facing auto repossession because of temporary shifts in income. The auto lender should look at the immediate situation. If the potential borrower now has the ability to make on time payments? Lenders should have the borrower make a payment adjustment and stop demanding back payments. 

Trying to strong arm consumers is a worthless tactic. Some car title loan lenders think that consumers have no alternatives and must have their car in question. Push too hard and refuse to refinance? The consumer will probably have another vehicle on tap before your repossess the one in dispute! Some lenders are afraid that giving one payment adjustment will create issues down the line. Repossession, however, is truly humiliating for most people! 

Repossession and Auction

Most lenders operate on the assumption that repossessing and auctioning a car is the best chance. Especially if they have to recover a portion of the loan that has defaulted. Often, consumers driving the car will offer more money than the lender can get at the auction, And, there are no fees to a repossession agency or auction house.

The need for repossession will never fade away! There are always borrowers who simply cannot afford the car anymore! Or, they just don’t care if car payments are made or not. The point is? Auto repossession should be the last option exercised, period. It’s not uncommon for people to mismanage money, or to have life experiences that cause their budget to crumble. Let your finance company know! Let’s continue to learn more about how to stop a car title loan repossession. Learn about title loans from https://en.wikipedia.org/wiki/Title_loan.

Eligible Debts for Discharge

Many people seek bankruptcy protection for their debts when learning how to stop a car title loan repossession. But only a few people know the difference between their own debts! Not all debts are the same. And, their difference are truly important within the bankruptcy process.

Secured Debts

Secured debts are those that have an asses, or collateral, against the loan. Common examples of secured debts are:

  • Mortgages
  • Car Loans
  • Title Loans

stop a car title loan repossessionIn the event of default, secured debt creditors are granted repossession rights over the asset. These repossession rights make managing secured debts in bankruptcy a bit more trickier than unsecured debts. In general, secured debts are better managed through Chapter 13 cases. Why? So that the debtor can develop a repayment plan to satisfy the debt owed. Repayment of the debt is generally required in secured debts. This is in order to prevent any liquidation or repossession of assets. 

Unsecured Debts

Debts that don’t hold any asset or collateral against the loan are called unsecured debts. Common examples include:

  • Credit Cards

  • Medical Bills

  • Utility Bills

  • Some Personal Loans

Things Lenders Should Consider Before Repossessing a CarThese are the most common types of debt brought into bankruptcy. They’re easily managed by either a Chapter 13 or Chapter 7 filing. The reason? Unsecured debts do not grant automatic repossession or liquidation rights to creditors. This gives the debtor more flexibility in finding a resolution. While many of these are easily managed in bankruptcy, there are some that are not eligible for discharge in bankruptcy.

Ineligible Debts

Some debts aren’t eligible for bankruptcy protection under any circumstance. Unpaid child or domestic support payments, unpaid court fees and criminal restitution payments are not eligible to become part of bankruptcy filing. These payments are consider one’s civil responsibility and are not eligible for payment assistance. 

In general, tax and student loan debts are also not eligible for bankruptcy protection. But, there are some exceptions! Income tax debts may qualify if they at least three years old, have a current tax return on file and were not considered part of fraud case. 

Student Loan Payments

Student loan payments may be allowed into a bankruptcy filing under circumstances. However, the debtor must be able to prove they are not federal loans, had made good faith efforts to repay the loan and are suffering financial hardship. Furthermore, student loans are typically only admissible into Chapter 13 cases when they’re accepted into a filing.

How to Stop a Car Title Loan Repossession – Conclusion

The important point is that you have a car title loan. And, you’re having difficulties paying. Especially if the lien holder is threatening to repossess or has repossess your car, is threatening to sue or has sued you. Then, the best thing for you is to settle with the lien holder! You can contact Car Title Loans California to see if we can refinance your title loan.

Always stay in contact with you car title loan company! That’s How To Stop a Car Title Loan Repossession!