Many Americans are going through extremely difficult financial times. Millions of Americans have been laid off from their jobs because of COVID-19 shutdowns. The coronavirus crisis has caused financial stress for nearly 9 out of 10 Americans. According to a recent CNBC poll, 40% of Americans are worried that they do not have enough money saved during the current economic crisis.
Over 25% of Americans reported that they are experiencing stress when it comes to paying their monthly utility, rent, motor vehicle bills, and mortgage bills. Even though over 40% of those polled have stated that they have already cut expenses, many people will be unable to make their monthly vehicle payments, leaving them concerned about repossession.
What Should You Do if You are Facing Repossession?
If you have missed car payments due to distressing financial times, you may be worried about your vehicle being repossessed. Creditors have a right to repossess, or take your vehicle when you have a car loan and fail to make a payment. They sometimes choose to seek a court ordered judgment against you, but they are not required to do so in California, as long as they peacefully repossess your vehicle.
When can Creditors Repossess Your Property in San Diego?
In California, auto lenders can repossess your car as soon as you repossess, even if your payment is only one day late. Your loan contract may give you a grace period. Auto loan companies can also repossess your car if you fail to keep it insured by not making your insurance premium payments. You do not need to be present when the auto company repossesses your vehicle, but they cannot break into a locked or fenced area without permission.
The Importance of Speaking to a Bankruptcy Lawyer
You can avoid repossession by refinancing your loans, or making up the back payments. You can also surrender the car, or contact your lender to discuss other actions. If you are concerned about repossession, the best thing you can do is to speak to an experienced San Diego bankruptcy lawyer. At the Bankruptcy Law Center, we can help you review your case and explain your best options.
In some cases, filing for bankruptcy can be a beneficial option. Many people who file for Chapter 7 bankruptcy can keep their property, including their motor vehicles after they file. If you are not too far behind on your payments, we can help you negotiate with your lender.
In many cases, they are willing to negotiate with clients represented by legal counsel. Having a repossession on your credit score can be damaging for a long time. It is worth taking the time to speak to a lawyer about your case. Contact the Bankruptcy Law Center as soon as possible to schedule your initial consultation.