If you’re in debt and can’t cover your auto loan, you could lose your vehicle. Two or three missed payments can result in your car being repossessed. Fortunately, there are ways to avoid this situation, including filing for bankruptcy with an attorney. Here’s what you need to know. 

How to Prevent Your Car From Being Repossessed

1. Assess Your Situation

Start by analyzing your car loan. How much do you owe each month? What are the terms of the loan, including interest rates? What happens if you don’t pay on time? Are there late fees? 

Next, determine how much you can pay. Is your budget tight this month, or is this an on-going problem? Are there any expenses you can save on this month? For example, can you cancel your gym membership or a streaming subscription?  

2. Make Late Payments

Even if you’ve missed a month or two, you can still make late payments. Doing so can help prevent repossession, depending on the terms in the loan agreement. However, make sure you cover all the relevant costs, including late fees and other charges; this will help ensure that you don’t default and the lender accepts your payments.

While this strategy may work at first, don’t rely on it. A lender can change its policies and may not be as forgiving the next time. 

3. Call the Lender

Once you have all the details of your situation, speak to the lender about your options. Make sure to be courteous and grateful, as you’ll be asking the company for assistance. Tell your story, give context for the late payments, and be clear on how you intend to address the situation.

One common solution is requesting a deferment. This allows you to cover a missed payment by the end of the loan term—without racking up expensive late fees and interest payments.   

One of the most effective solutions for preventing vehicle repossession is filing for bankruptcy. When you need a reliable attorney to help, contact Ferguson, Hayes, Hawkins & DeMay in Downtown Concord, NC. Their lawyers will ask you extensive questions about your situation, discuss your options with you, and assist with the paperwork, document collection, and court hearing. Call (704) 788-3211 to set up a consultation with an attorney, and visit the website to learn more. Text LAWYER to (910) 830-0939 for special promo information.