Having any of your assets repossessed because of debts that you owe can be confusing, frustrating and heartbreaking. You worked hard to acquire all that you have, and it likely seems completely unfair that someone is now taking some of it away from you. If you are in a situation like this, it is important that you understand why this is happening to you so that you can do all that you can in order to remedy the situation.
Repossession occurs when you have not been keeping up with the repayments that you owe on a certain asset. For example, if you have not been able to pay your car loan repayments for a few consecutive months, it is possible that it will be taken away from you.
How does repossession work?
The business that lent you money to buy an asset like a car or a house may believe that they will never get their money back because you have missed so many payments. Therefore, in an attempt to get their money back, they can take back the asset that they lent you the money for. If this is a car, they have the right to do so without any notice.
However, lenders never want to do this, since they will never get all of their money back using this strategy. Therefore it is in their interests to work with you to make a new payment plan.
If you are unable to afford repayments, you should get in touch with your lender immediately so that you can stop repossession from happening completely.
Source: Debt, “Repossession,” accessed Jan. 12, 2018
