Your car is going to be repossessed. You don’t have enough money on hand to make all of the full payments or pay off the amount that you owe from the missed due dates. Should you still do what you can, sending in a partial payment, or should you stop paying entirely and let the process play out?
While all situations are different, it’s worth noting that some experts believe it’s best to send in that partial payment. In some cases, the court may even look at that as a settlement or an agreement between you and the lender that you get to keep the car.
For example, maybe you were paying $500 per month. You missed a few payments and you don’t have the $1,500 you owe. However, you do have $300. If you send that in and the lender accepts it, the court may say that the right to repossess the car has now been waived.
It’s also important to remember that lenders want to take payments and work with you. Repossessing a car is not profitable to them, though they prefer it over letting you keep it without paying. If you reach out to the lender and explain exactly why you can’t pay and that you’d like to find another solution, some will work with you so that they eventually get their money and you keep your car.
It’s important to know all of your legal options when facing any type of asset forfeiture. Do not assume that there is nothing you can do and be sure you understand your rights.
Source: Shabana Motors, “How to Stop Car Repossession: The Do’s and Don’ts,” accessed May 04, 2017
