If you’ve recently suffered a financial hardship, you may have gotten behind in some of your payments. This could spark fears of losing your property; however, there are several things you can do to protect assets against repossession before your creditor has an opportunity to act.
Your first course of action should be to talk to your creditor as soon as you realize you’ll be making a late payment. That way, you stand a better chance of obtaining a repayment plan that will allow you to retain your property. If the creditor is unwilling to work out a payment plan, you can then try another option to help you avoid repossession.
If your property is worth more than you owe on it, you might be able to sell it in order to pay off your loan. You can’t typically do this if you are upside down, because your creditor will normally hold the title to the property until after the note is paid. In that case, you may want to consider refinancing instead. This can normally be done even if you do owe more than the item is worth as long as you have a fairly stable credit history or a willing cosigner to accept responsibility.
Voluntary repossession can help you eliminate many of the additional fees that are associated with seizing property. You’ll still be responsible for the amount owed on the loan, but may not have to pay for a repossession specialist or some of the legal fees that arise whenever reclaiming property is initiated by the creditor.
In some cases, bankruptcy can also provide you with some protection against repossession. If you’re faced with losing your property, you may be distraught and not know where to turn. You need a compassionate attorney who won’t judge you, but instead will help you obtain the relief you need. For more information, contact us today.