How to Stop a Car From Being Repossessed
A bank can repossess a car from a lender when the borrower doesn't make his payments in a timely fashion. Typically, a bank's lending agreement allows it to repossess a car when the borrower falls behind on his car payments by three months. When a car is repossessed, the lending bank hires a car repossession firm to find the car and tow it to its facility. Keeping a repossession from happening can be difficult or it can be easy, depending on how much cash the borrower has on hand.
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Instructions
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Pay the amount that's owed to bring the loan current. Usually when a bank wants to repossess a car, they will attempt to do so unless the lender pays all the payments that are late to bring the loan current. Getting a second job or a personal loan is one way that you can pay the amount that's due and bring the loan current.
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Negotiate with the lending bank. Talk with a customer service representative at the bank and tell her why you are behind on your car payments. She may be sympathetic to you and allow you to make payments in order to keep your car from being repossessed. If you don't make these payments on schedule, the bank typically goes forward with the car repossession process.
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Refinance the car loan, if you have the credit to support this. Tell the bank you'd like to refinance your car loan to a longer period of time that's more affordable to you. When you refinance your car loan, you typically can extend the number of months that you will make payments. By extending your car loan through refinancing, a bank typically automatically deems your payments as current and stops the car from being repossessed.
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Hide your car. If you know your car is about to be repossessed, don't keep your car at your home or work address. Car repossession companies are rather clever about how they look for you. After all, they get paid based on whether they recover your car. If your home is not kept at a known address of yours, they can't find it and can't repossess it. However, be warned that if you are seen driving the car by someone working for one of these companies, he may try to stop you and try to take the car from you.
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File for bankruptcy. As soon as you file for bankruptcy, creditors can no longer seek to collect money that are owed until the bankruptcy is over. This includes the repossession of cars.
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