It may seem preposterous, but it is possible for a lender to send someone to where you live or work and take your vehicle. If you are behind on your payments and efforts to collect have not been effective, you could experience repossession. This is a frustrating and invasive method, and this is why it is in your interests to know your rights and how to shield your interests.
There are specific circumstances in which repossession could happen. A lender does have the right to take back a vehicle for non-payment, and this can happen without receiving warning. If you are behind on your payments or want a way out of your current financial situation, it may be in your interests to learn about bankruptcy and the specific benefits this process can offer to you.
How does it work?
It is helpful to know how repossession works and what could happen if you fall too far behind on your payments. Consider the following about this specific process sometimes employed by lenders:
- Your lease or lending agreement required you to agree to certain terms. Non-payment is a violation of these terms.
- Repossession will result in harm to your credit score.
- While lenders can repossess vehicles parked on private property, there are limits to this in some places.
- Even if the lender takes your vehicle, you could still owe money to the lender.
Filing for bankruptcy enacts the automatic stay. This halts all collection efforts against you, including repossession processes. You will also have protection against phone calls, collection letters and more, and all creditor harassment must stop immediately. While under the protection of bankruptcy, you can also effectively deal with certain types of balances once and for all.
A better financial future
There could be a better financial future in store for Tennessee adults through bankruptcy. While this may not be your first choice, it does provide you with a way to regain your financial footing while keeping some of your important personal property. There are different types of consumer bankruptcy, and the right choice depends on your financial situation, including the types of debt you owe. A close look at your situation can help you understand the options available to you.