If you find yourself having financial troubles, one of the first things that may happen is an inability to meet your monthly bills. When one of those bills is a car payment that is no longer affordable, you have options. You may be able to keep your car and avoid repossession, but you must take action. Available options can include the following:
- Call the car loan company. Your lender may be willing to work out a payment schedule depending on the reason for your inability to make your payments. You may be able to turn in your car to the lender or have your interest rate reduced to a more reasonable amount.
- Sell your car. Instead of waiting for the repo man, find out what your car is worth. If it is worth more than your loan, see if you can sell it. The used car market has burgeoned in the past few years and there is great demand for reasonably priced used vehicles.
- File for bankruptcy. In certain situations, you may be able to keep your car and avoid repossession by filing for bankruptcy. Your payments may be reduced in a bankruptcy proceeding.
If you have questions about how bankruptcy can be used to avoid car repossession, contact a skilled bankruptcy attorney in Pennsylvania today.