August 17th, 2010 by Reed Allmand 
Debtors who have fallen behind on their car payments are at risk for vehicle repossession. Unfortunately, in their attempts to find out how they can save their car from repossession, they are the victims of misinformation and outright scams. Below are few myths about car repossession that every debtor needs to know:
Myth #1 – Car finance companies have to wait until you are at least 3 months behind on your payments before they can repossess your car.
Truth – Car finance companies have the legal right to repossess your vehicle even if you are just one day late paying your bill. While it is unlikely that a lender will send out the repo man just because you are a few days late, the important thing is that they are not obligated legally to give you time.
Myth #2 – If I make a partial payment to the car finance company they do not have a right to repossess my vehicle.
Truth – Partial payment on your car note is not full payment. Therefore the unpaid portion is considered late. The lender still has a right to repossess the vehicle for non-payment.
Myth #3 – The lender will be less likely to repossess my vehicle if I explain what a tough time I’m having financially.
Truth – While it is important to communicate with your lender when you are facing financial challenges, doing so does not guarantee that you will avoid vehicle repossession. Debtors who want to work out some type of solution with their lender must explain their situation, offer a solution and have any agreements put in writing if they want to avoid car repossession.
Remember, only bankruptcy can legally put a stop to a vehicle repossession. If you find that you are unable to pay your car note because of other debts such as credit card and medical bills, you may want to consider a bankruptcy filing.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
Subscribe to our e-mail newsletter to receive updates.
