In these tough times, it’s become common to miss a deadline or two when it comes to bills. However, not getting a handle on your loan payments means facing inevitable repossession.
Luckily, this doesn’t have to be the case if you have the right information and know your options. Find the right solution for your situation by exploring these tips and avoid repossession of your property. If bankruptcy is the route you want to take, and it is a sound choice, make sure to hire a reputable bankruptcy lawyer in Chula Vista, CA, and receive the help you need to get back on your feet.
How can I avoid repossession?
Dealing with financial strain is difficult enough, let alone having repossession looming over you. This is why it’s good to gather all the facts about repossession so that you find the answers to all your questions and become familiar with your options. Start by exploring the actions you can take to swerve repossession:
1. Ask for a loan modification
Before you make any other moves, you may want to contact your lender and consider other options. Repossession can be complicated for the lender too, so it’s worth exploring this route first.
Tell your lender about your financial situation, discuss when and how you’ll be able to pay off the debt and see if you can find some common ground. Perhaps they’ll be willing to modify the terms of your loan, offer a longer grace period, or provide a lower interest rate.
Even though they are not legally required to alter the terms of your loan agreement, it’s worth a try.
2. Reinstate the loan
If you are able to, you can reinstate your loan and avoid the repossession of your collateral property. You can accomplish this by paying off all the missed payments and fees at once. If you can’t afford it, you may consider selling some of your belongings, although this can become a vicious cycle.
You should know that you can only reinstate your loan once per 12 months and twice overall. Also, under California law, you have the right to reinstate the loan even after your property gets repossessed if it hasn’t been sold or disposed of.
3. Sell your property
If selling your car or other property you put as collateral will pay off your loan and any fees, it might be a good idea. Just be aware that you need the approval of your lender to do it. Even if you get the approval and pay off your debts, you end up without your property, so make sure to mull over this option, as the entire point of avoiding repossession is to keep your property.
4. Refinance the loan
Missing a few payments and defaulting on your loan may disqualify you from refinancing your loan, but you can inquire about it and see if it’s a viable option anyway. If you are able to refinance, you can do so through your lender or another one. Be aware that this action will typically prolong your loan term, include fees, and make your interest rate higher overall.
5. File for bankruptcy
When you can’t seem to pay off your loan and want to avoid repossession of your property and get a fresh start, filing for bankruptcy is the way to go. This way, you’ll stop all repossession action against you and gain some much-needed time to reassess your financial situation and options going forward.
Where can I find a good bankruptcy lawyer in Chula Vista, CA, to help me avoid repossession?
Filing for bankruptcy is the best course of action when facing repossession. However, it’s a complex process that requires plenty of experience and knowledge to complete correctly. This is why hiring a reputable lawyer is of utmost importance.
You can rely on Chang & Diamond to answer any questions you may have, tell you which assets the creditors can repossess, and assist you in filing for bankruptcy seamlessly. With us, you’ll get a free initial consultation, comprehensive representation from start to finish, and the support you need to get back on track.
Get in touch with us to schedule an appointment, leave all the work to experienced professionals, and enjoy a stress-free day around San Diego Bay.