Getting Your Car Repossessed Is A Big Deal

Category: Finance, Credit.

Getting your car repossessed is a big deal.

It can be a stressful thing when your car is involuntarily repossessed. It can make it impossible for you to get to a job where you earn the income that not only makes the payments on your car, but puts food on the table and clothes your family. But what about voluntary repossession? Will it hurt you if you do something like this, or is it better to do it yourself than to just let the lender decide when they want to take your car? Is it possible that you can get out of the debt you owe on your car quickly if you just give up your car yourself? Actually, it really makes no difference who issues repossession.

It is important to know a little bit about repossession before you make any quick decisions about getting your car repossessed at your request. Whether it is voluntary or not, it is going to have the same effects on you either way. It really does not matter who repossesses your car. Getting your car repossessed yourself is usually not the best decision you could make when trying to get rid of the balance you owe on the loan you took out to pay for your car. You are still going to face the same consequences if you voluntarily have your car repossessed as you would if it was done without your consent. One of the major downfalls of getting your car. repossessed is that your credit score goes down and that it shows up on your credit report. This negative information will show up on your credit report for at least seven years, whether or not the car was repossessed voluntarily.

This will not change if you have your car voluntarily repossessed. You have no say in what happens to your car once it is repossessed. Often, it will sell for less than the balance you owe, therefore still leaving you owing money to the lender for a car you do not even have anymore. Your lenders will usually sell the car, and try to get the money out of it that you owe. This balance that you will owe after the car is sold is called a deficiency balance. However, if the amount they sell the car from is more than the amount you owe, they are obligated to give it to you.

Just because the car is no longer in your possession, you are still obligated to pay the amount of money that they could not get from the sale. There are rights you have that say that any money received after the car is repossessed and sold, and the balance is paid off, goes to you. Voluntary repossession should not be one of your first options. This happens, whether the car, however is repossessed voluntarily or involuntarily. You should seek help elsewhere before you resort to this. Many lenders will negotiate with you so that you can pay off your loan in a way that s easier for you to live up to, if you just ask about it and tell them your situation.