What happens when your car is repossessed, and you no longer have transportation for work? It is a difficult situation many Americans find themselves in every year due to crippling debt. If you can’t keep up with payments on your car, the lender will repossess the vehicle, leaving you to catch the bus or train for your daily commute to work.
For some, public transportation isn’t even an option – with residents in rural Georgia having long distances to travel before they reach the next house, let alone a bus or train station. The bottom line is, getting to work without a car is often not an option, or a difficult one at best. Recovering from a car repossession is a challenge but you do have options.
Question a Car Repossession
The first step towards recovery after a car repossession is questioning why it happened. If you know you have missed payments, you probably already know why the car was repossessed. However, if you are not sure, contact the lender for clarification. Calling the lender will also give you the opportunity to find out if you have options for getting your car back.
Reinstating a loan is sometimes a preferred option for lenders. Typically this involves paying in a lump sum all amounts need to bring the account current. This does not mean the car repossession is removed from your credit report. However, the new payments may show on the report. The alternative is attempting to buy the car back at auction, which does not reflect on your credit report, but you may not know where or when an auction is being held
Attempting to recover your car may sound like a great idea but you must first consider whether or not you can afford the repayments, as well as any associated costs. Remember, you still have to pay for insurance, gas, and any repair costs if the car breaks down.
Another option is to file for bankruptcy before the car repossession results in the sale of the vehicle. If you are reorganizing your debts through a Chapter 13 bankruptcy, it may prove possible to get the car back before it is sold at auction. However, there is no guarantee you will recover your vehicle if you file Chapter 13 after the car is repossessed. Filing a Chapter 13 prior to repossession can allow you to keep your vehicle and pay for it through a court approved plan that may have more affordable payments.
Speak to a Bankruptcy Lawyer
If getting to work without a car is not an option for you, and you believe you can afford a repayment plan, bankruptcy may be the right option for you. However, you will have to act quickly in order to prevent the car from being sold. The offices of H. Lehman Franklin P.C. can provide help with filing bankruptcy papers after careful consideration of your finances. Call our offices at 912-764-9616 or email us at firstname.lastname@example.org today if you are struggling to get to work after car repossession. It is especially important to continue earning a living when you are already dealing with debts. Act now to take the steps necessary to save your car after repossession.