If you have fallen behind on your car or truck payments, the lender may be threatening to take it back. You need your vehicle for work, to take the kids to school, to go grocery shopping. How will you manage if the repo man comes?
Take a deep breath; you have options that will enable you to avoid repossession.
First things first
You may be going through a rough spot financially, but you may have been able to get an auto loan even though you do not have good credit. If so, you are at a higher risk for a lender to seize your vehicle if you fall behind in your monthly payments. The first step in addressing this situation is to talk to your lender. You may be able to gain some time: The lender might work with you if it appears you can pay soon. You might also negotiate a new contract and change your payment date. If so, remember to get any changes in writing.
Next steps
If you find you cannot work with your lender, the situation becomes more critical. When you default on your car payment, the lender can repossess your vehicle at any time, without notice. Knowing that, your next step is to reach out for help to an attorney experienced with repossession issues. This is where an option such as bankruptcy comes in. When you file, this applies an automatic stay to the actions of creditors, so they cannot take your property while the bankruptcy process is pending. If the repo man is already on his way to seize your car or truck, time is of the essence. Your attorney can quickly move to file an emergency bankruptcy petition with the court, which would immediately generate the automatic stay.
Taking charge
Obviously, there is a reason for the financial stress you are under, and you do not need the further chaos in your life that the repossession of your vehicle would cause. It is time to take charge. Bankruptcy is a financial tool designed to help you get out of debt, and it might be a good option for you, all the way around.