Gladstone Car Repossession Attorney, MO
Car repossession is likely 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.
With the guidance of our knowledgeable local repossession attorney, we can help you prevent foreclosure in Missouri.
What are the Effects of Car Repossession?
A car repossession has a negative impact on your credit score. It typically stays on your credit history for seven years and can significantly impact your credit score.
The following are the other consequences you will face once your vehicle has been repossessed:
- Your car may be taken away from you;
- May cause harmful effects on your credit score; and
- Make it more difficult to obtain simple and inexpensive financial support.
It is crucial to find alternatives to repossession, such as declaring bankruptcy. Creditors and vehicle recovery organizations are pretty likely to take your car if you cannot pay your debt. Therefore, it is important to respond immediately.
Speak with our experienced bankruptcy lawyer at Jeppson Law if you intend to file for bankruptcy so that we can help you evaluate your options and determine the best course of action for your case. To learn more about your legal alternatives, contact our car repossession lawyers.
What Are the Ways to Stop Repossession in Missouri?
Regaining possession of anything that has not been paid for some great importance is commonly known as “repossession.” Although home foreclosure is a form of repossession, this is still related to a car loan.
Being designated as the lienholder on the car title, the creditor has the right to seize the automobile if you keep making late payments as scheduled. The lender will offer the debt on the open market when the debt is paid off.
To further explain, below are the following keyways on how to stop repossession:
Make Any Payment
It’s uncommon for us to encounter clients 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 portion 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,” but it is helpful to maintain your automobile’s security for a sufficient time before you seek legal counsel.
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 Jeppson Law bankruptcy attorney in Gladstone City is appropriate.
Negotiate a Settlement
Most people try to get in touch with 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. Certain 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
There are several options to avoid repossession:
- A debt consolidation loan with reduced interest,
- Getting a friend or family member to cosign for you on loan, or
- Receiving a personal loan
Filing bankruptcy is another 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.
Let’s dig deeper and discuss what you need to know regarding Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Your creditors cannot reclaim the vehicle if you choose to file for Chapter 7 bankruptcy. This may bring 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.
Our car repossession attorneys at Jeppson Law in Gladstone can assist if you intend to file for Chapter 7 bankruptcy and protect your vehicle.
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.
You can get advice from our auto repossession lawyers at Jeppson Law to file for Chapter 13 bankruptcy and plan a debt payback strategy that works for you.
However, an automatic stay will not halt the prosecution of criminal charges, the payment of alimony or child support, or other eviction actions. The advantages of declaring bankruptcy and how it can prevent your car from being seized are things that our practiced Gladstone car repossession attorneys in Missouri can explain to you.
Actions to Take After Car Repossession
It would be difficult for debtors to change the situation once an asset has been taken. The creditor debits the account and has the right to file a lawsuit to recover any shortfalls or unpaid balances. Generally speaking, creditors have the right to 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 that the repossession process can frequently be initiated without a court order. 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.
Investigate 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. The most beneficial option might be filing for bankruptcy, if not possible.
Call our Jeppson Law firm car repossession attorneys to learn more about your options for stopping the repossession.
Get Legal Assistance at The Jeppson Law Office!
Do you want to avoid your creditors claiming your car? You must take immediate action if you face repossession. Speak with our law office at The Jeppson Law Office, and we offer a free consultation with credibility and security.
Our trusted Gladstone bankruptcy attorneys know how to stop repossession proceedings and assist you in keeping your car.