Phoenix, AZ -- (SBWIRE) -- 12/23/2013 -- Those who wish to learn how to avoid vehicle repossession will be delighted to receive this assistance. Credit-yogi.com understands that things don’t always go the way they should financially, and is offering some tips to help folks keep their vehicles, such as:
-Redeem the Car
-Surrender the Vehicle
-Proactive Choices
-Bankruptcy
Redeem the Automobile
One answer to how to avoid repossession of a car is to redeem it. When a person takes this action, he pays the past due balance on his car loan in order to get the vehicle back. This is a good choice for many people; however, one must remember that along with the outstanding balance of the loan, there will also be added costs that he must incorporate into his payment. Some of these include repossession fees and storage costs.
Voluntary Surrender
Simply giving the automobile back to the lender voluntarily also effectively responds to how to avoid vehicle repossession. If it’s just been too difficult to make payments on time and in full, it may be best to return this auto to the lender and get a different one that has lower or no payments. The idea is that, if one gives the vehicle back, the lender will waive or decrease the deficiency amount. A lender might do this to save money by not having to hire a repossession company.
Be Proactive
Set up a meeting with the lender to find answers to how to avoid repossession of a car. Perhaps one can sell the vehicle oneself to facilitate paying off the loan balance. Try to settle the dispute over the vehicle by taking issues to the table before the lender does it. If the lender infringed upon one’s rights while having the car repossessed, one can contest the legality of the action. One may be able to convince the creditor to reinstate the auto loan, redeem the car, or give the car back if he can prove the creditor used unscrupulous methods.
The “B” Word
The absolute last resort that answers how to avoid vehicle repossession is filing for personal bankruptcy. Most people would rather give the auto back than file for bankruptcy, but some whose financial situation is not very solid may go for the idea. When a person declares bankruptcy, an automatic stay goes into effect which precludes creditors from trying to collect what is owed them. This stay is only effective for a limited time, during which someone can work with those he owes to devise repayment plans.
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