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PR-Inside.com: 2015-12-11 16:08:42
A man recently began having some difficulty making the payment for his second car loan. Should he file for bankruptcy or allow a car repossession to go forward? Well, if it’s only the one payment he’s having trouble with, filing for bankruptcy would be a bit much. Seeing that bankruptcy stays on a credit report for 7 to 10 years, it may not be the best solution. Credit-yogi.com has looked into bankruptcy information, and is here to share what it learned, including:
• Automobile Repossession
• Repossession and Creditability
• What Happened?
• Other Options
Understanding Vehicle Repossession
Bankruptcy and car repossession don’t always go hand-in-hand. It is possible to go through just a vehicle repossession. Here’s how it works: The lender sends a written warning to the borrower, stating that the automobile will be repossessed if other arrangements cannot be made. If the borrower ignores this warning, the lender hires a repossession agent to go get the vehicle, which is then sold at auction.
Repossession’s Effect on Creditability
It’s true that both bankruptcy and car repossession damage a person’s credit rating. A repossession, however, is apt to get in the way of someone who is trying to get another automobile loan later on. Lenders see that an individual had defaulted (stopped paying) on his previous loan to the point that the car was taken back by the original lender and sold at auction, and they don’t want to take a gamble on that person’s creditability. No financer wants to look like a fool, so having a vehicle repo’d does more damage in the long run than bankruptcy.
What Led to Repossession?
Credit-yogi.com strongly suggests that one look at the circumstances that led up to the car repossession. It is unlikely that having difficulty paying one debt is the only reason someone might consider bankruptcy. It’s likely that, if bankruptcy and car repossession are spoken together, there is a larger financial problem. Go over the steps one took that led him here, to this predicament, so that he does not end up making the same mistakes again.
If you feel the need to consult with bankruptcy attorney concerning your legal rights in the bankruptcy process, Credit-Yogi.com has specialists standing by to provide you with a free, no-obligation initial consultation. Click here: goo.gl/EcmPMl
Alternatives to Repossession
Rather than face the joint prospects of bankruptcy and car repossession, try selling the vehicle oneself, rather than letting it be taken back by the bank. Most likely, the price one will get for the auto will be less than what is owed on the loan, but it’s still better than having to pay repossession fees and other related charges. Trading the car one can no longer afford for a less expensive one can also help avoid repossession. See if the loan for the new vehicle can be incorporated into the old loan for a lower payment and longer term.
Incorporating your existing loan with the purchase of a less expensive vehicle is a viable alternative to filing for bankruptcy. Credit-yogi.com will help you through the process. A car loan modification is another option to consider. Click here for a free, no-obligation consultation with a financial expert: goo.gl/NJuc7H
Created in 2004, Credit-yogi.com took aim at one goal – to supply accurate, rapid responses to the financial questions of consumers. With a database of over 160,000 legal and financial professionals, the website has steadily succeeded in meeting that goal, resulting in endless repeat customers. To obtain a cost-free preliminary conference, dial 1-866-964-9644, any time 7 days a week.
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