If you are in danger of having an item, such as a car, repossessed, there are a few routes to consider. One of the first ways that you can stop a repossession is to call the creditor and be honest about your financial difficulties. Many will work with you, even if you cannot pay the entire bill right away. You can also consider selling the car and paying back the creditor with the money you make. Finally, bankruptcy is always an option if you cannot get caught up on payments any time soon.
Most people try to avoid calls from creditors and hide their car when it is in danger of repossession, but going this route usually means that you are merely delaying the inevitable. If you want to stop a repossession, it is a good idea to call your creditor to find out your options. Most creditors will work with borrowers since they prefer to get some money immediately rather than having to hire someone to take the car and then sell it at auction. Let the creditor know that you want to keep your car and would like to work out a payment plan. Be prepared that some creditors might not be willing to wait for payment, but know that most will work with you to allow you to keep the car, as long as you stick to the new payment plan.
If your car is worth close to what you owe on it, one of the easiest ways to stop a repossession is to sell it. This is a good option if you can either do without a car for now, or can purchase a less expensive one in order to get rid of this debt. Make sure to inform your creditor of this move before you do it, and then offer the money you make on it to pay off what you owe. If the car were to be repossessed, your creditor would likely sell it at auction for much less than it is worth, so this option should be agreeable to them in most cases.
Bankruptcy is an option if you cannot work out a payment plan with your creditor to stop a repossession, and cannot make much from selling the car. Though this route will damage your credit heavily for several years, it will stop a repossession, and get rid of the worry of having debt hanging over your head. It will also stop the calls from creditors to whom you owe money. If your car is the only bill that you are behind on, bankruptcy may not be the best option, but if it is one of many delinquent bills, it may be time to contact a bankruptcy attorney.
