Evaluating Your Options in the Event of a Car Repossession
Do you want to know how to stop a repossession of your car or other belongings in Kansas City, MO? Car repossession is for borrowers who are behind on their loan payments. Failure to pay, however, results in further damage beyond the inconvenience of losing your property.
Your account can be turned over to a debt company once you submit late payments. A wage garnishment may occur, and you may even face legal action. In Kansas, repossession follows a “self-help” procedure. That allows lenders to reclaim vehicles outlined in the loan agreement without needing court authorization.
Normally, borrowers are notified beforehand. The repossession must also occur peacefully and without trespassing on certain rights. If you’re facing potential repossession, don’t panic. There are still ways to save your car.
Quick Summary:
- Repossession can occur after missing many car loan payments (usually exceeding 30 days).
- Repossession can damage your credit score, take away your car, and make it harder to get loans.
- In Kansas, it is legal for the bank to take away your car without warning.
- Chapter 7 or 13 bankruptcies can stop repossession, each with advantages and disadvantages.
- Several alternatives to bankruptcy also exist, such as making payments, securing your vehicle, and more.
When Can Repossession Happen?
Before diving into how to stop a car repossession, it’s important to understand when your lender can legally repossess your car. In most cases, repossession can happen if you miss several car loan payments, typically exceeding 30 days.
The exact terms for default will be outlined in your loan agreement.
What are the Effects of Car Repossession?
A car repossession harms your credit score. It typically stays on your credit history for seven years.
The following are the other consequences you will face once your vehicle has been repossessed:
- Your car may be taken away from you.
- It may cause harmful effects on your credit score.
- It may make it more difficult to get simple and inexpensive financial support.
Finding alternatives to repossession is crucial, such as declaring bankruptcy. Creditors and vehicle recovery organizations may take your car if you cannot pay your debt. Thus, responding immediately is a must.
What Can I Do After My Car is Repossessed?
It would be difficult for debtors to change the situation once an asset has been taken. The creditor debits the account and can file a lawsuit to recover any shortfalls or unpaid balances.
Creditors can also take back the assets connected to a loan as soon as the credit account is overdue. The item can be recovered by hiring a third-party business that provides towing services for auto repossessions.
Remember, the repossession process can frequently be initiated without a court order.
Can The Bank Take My Car Without Warning?
Accordingly, the bank may take your automobile back without giving you a prior warning if you default on your auto loan. And only if they refrain from invading the peace or using threats of violence.
Understand your debt relief choices and choose the best one if you are making late or missed payments. Correcting loan delinquency as soon as possible before a repossession occurs will always be your greatest advantage.
Can Bankruptcy Stop Repossession in Missouri?
Filing bankruptcy is a great option to prevent vehicle repossession if you are struggling with growing debt. The automatic stay is put into effect as soon as you file for Chapter 7 or Chapter 13 bankruptcy, stopping any attempts to collect debt.
An automatic stay can stop wage garnishments, stop home foreclosures, and prevent car repossession.
Chapter 7 Bankruptcy
Your creditors cannot reclaim the vehicle if you file for Chapter 7 bankruptcy. That may only bring short-term bankruptcy relief, as Chapter 7 involves liquidation. Your creditors may repossess your property if they apply for a court order and win it.
Chapter 13 Bankruptcy
Making auto loan payments a part of your debt repayment plan will prevent your car from being repossessed if you decide to file for Chapter 13 bankruptcy. You have a three-to-five-year payment period if you file for this kind of bankruptcy.
However, failing to meet your repayment plan’s requirements can make you lose your rights to automatic stay. This, in turn, can continue the repossession of your car.
Are There Any Alternatives to Bankruptcy to Avoid Repossession?
Bankruptcy isn’t the only method to prevent repossession. Here are alternative ways on how to stop repossession:
Make Any Payment
It’s uncommon to encounter those who have no trouble making their auto payments. It is worth remembering that if keeping your vehicle is a primary goal and you can pay even a part of the balance, it may be enough to secure it in the meantime.
Secure Your Vehicle
Many owners keep their vehicles in garages, making it difficult for a repo man to enter without following the proper channels. However, this is not a “permanent solution”. It is helpful to maintain your automobile’s security for a sufficient time before you seek legal counsel.
Negotiate a Settlement
Most people try to contact the creditor in the situations described above (before missing a car payment) and urge the credit union or bank to work out a settlement that brings closure to the open account.
Some creditors could consider a loan agreement plan. That includes dates for the next installment and the debtor’s intention to be completely caught up.
Take Out Another Loan
Taking another loan can be a possible method to avoid repossession. You can do the following options:
- A debt consolidation loan with reduced interest
- Getting a friend or family member to cosign for you on loan
- Receiving a personal loan
Seek Legal Advice
In some circumstances, it may be possible for a borrower to try to stop the car from being removed by swiftly calling the authorities. City officials typically cannot intervene since the problem is private and should be settled in a court of law.
However, since officials are in charge of maintaining order, they might be justified in taking action if repossession teams commit violations.
For instance, a corporation that handles car repossessions is not allowed to enter personal property to reclaim a vehicle. State-to-state laws vary in the rules outlined in the applicable repossession law and even local-to-local.
Following bankruptcy law, you must understand your rights and be aware of the regulations. Speaking with a reliable bankruptcy attorney in Kansas City, MO, is appropriate.
Get Help From Our Repossession Lawyers Today!
Do you want to avoid your creditors claiming your car? You must take immediate action if you face repossession. Contact us at The Jeppson Law Office for a free consultation with credibility and security.
Our lawyers can offer personalized legal guidance and representation throughout the process. We will work with you to explore all available options and fight to protect your car and your rights.
Don’t wait until it’s too late. Our trusted bankruptcy attorneys know how to stop a repossession. We will assist you in keeping your car in Kansas City, MO. Give us a call now!
