By: Darrell Castle
So you’re behind on your car payment and your vehicle is about to be repossessed? Well, don’t even think about hiding or concealing it. That’s a crime.
The rules are a little vague though.
Do you park your car in your garage normally? Well, you can still do that. But the repo man may still be able to get the car as long as he doesn’t “break the peace.” That means he can’t cut chains, break locks or damage property.
But what if you hide your car in your neighbor’s garage? Or at a family member’s house? Then you’re making an effort to deceive the bank, and the court may consider that illegal.
Wherever you hide it though, the repo man can still legally get it assuming he knows where it is. And there are ways he can figure that out.
Basically, the rules of “hiding” your car to keep it from being repossessed are confusing and somewhat complex. And the end story will be the same — the repo man WILL eventually get your car!
Wouldn’t you rather just avoid this whole mess?
Filing for Bankruptcy To Stop the Repossession
You can stop the repossession by paying your car note. But if you could do that, then it probably would’ve been done at this point. That’s not your only option though.
By filing for Chapter 13 bankruptcy, you stop the repossession and lump your past-due car payments with any other debt you have into an AFFORDABLE repayment plan. Then for 3-5 years, you make payments on your plan until it’s complete. Chapter 13 will usually greatly REDUCE your overall car payment — not just the past-due amount.
Once the plan is complete, your car is completely paid off, you’ve discharged the remainder of the debt in the plan and you’ve kept your car!
This is a win-win for everyone involved — especially YOU.
What About Your Credit?
A car repossession reflects poorly on your credit report. And a bankruptcy isn’t ideal for it either. But if you’ve missed car payments already, then your credit score probably isn’t good to begin with.
However, a bankruptcy cleans your financial slate and provides you a fresh start! You can use this fresh start to rebuild your credit, and programs like 7 Steps to a 720 help you do so!
My firm offers 7 Steps to a 720 free to our clients.