Paying off the past due amount on your loan is probably the best way to avoid repossession, but this is not always an option. Working out payment arrangements, declaring bankruptcy, and borrowing money from another source are other options to consider if you want to keep your personal property. It also pays to be aware of the repossession laws in your area, because regional laws regarding repossession typically supersede lender loan agreements. A repossession lawyer can help you better understand your rights pertaining to the jurisdiction in which you reside.
One of the best options to avoid repossession may be to simply talk to your creditors. Many people try to avoid phone calls from creditors when they know they are behind on their payments, but ignoring the problem won't make it go away. It could work in your favor to speak with your lender and explain your financial situation. Make sure they know that you would like to keep your property. They might work with you by giving you more time to catch up your payments or setting up payment arrangements based on your expected income in the near future.
Another option to help you avoid repossession is borrowing the money to pay your past due amount. This may not be an option if you have poor credit, but it might still be worth a try if you are desperate to keep your personal property. If you can get approved for credit cards or other types of loans, you could use the money to catch up the amount you owe. A big downside to this is that you will have to repay the borrowed money, but it still might buy you some time. It may be beneficial to ask close friends or family for a loan first because they may not charge you interest and will likely be lenient about how long it will take you to repay them.
Bankruptcy is another way to avoid repossession, but this should be a last resort. When you file for bankruptcy, it normally remains on your credit history for ten years. This will probably have a negative effect on how easily you can obtain credit for that length of time. An automatic stay order typically goes into effect during bankruptcy, which means creditors must immediately stop collection activity, including repossession attempts. You should probably discuss your financial situation with a bankruptcy lawyer before making the decision to file.
