Need To Stop A Car Repossession In Colorado?
Wondering how to stop a car repossession in Colorado? Read on! We can help you stop a car repossession in Colorado and, in some cases, get a car that has been repossessed back.
What Is A Car Repossession?
A car repossession is when the lender takes possession of the car, either against your wishes or with your consent. A car repossession will take place after you’ve stopped making payments to the lender or haven’t been making payments according to your contract with the lender.
Unless you’ve consented to the repossession, you can’t predict when the lender will repossess your car. It could be at home, at work, or while you’re at the mall.
The lender will take the car along with any personal belongings inside it. You might have the chance to retrieve those items at the tow yard, but they’ll likely charge you a fee or make it a huge hassle for you to get them.
By the way, a “voluntary surrender” will still show up on your credit report as a repossession and the lender will still want you to pay the balance of the loan.
When Will A Lender Repossess My Car?
A lender will repossess your car after you have stopped making payments or have missed payments. It is entirely up to the lender to decide when, or if, to repossess your car, but most won’t do it until you have missed at least two to three payments.
Before the lender repossesses your car, it will send you a Notice of Right to Cure, which gives you 20 days to bring the car loan current. If you make all the payments you’ve missed, great. You’ll keep the car. If you don’t make all the payments you’ve missed in those 20 days, the lender will put the repossession process into high gear.
Can I Get My Car Back After The Lender Repossesses It?
Once the lender repossesses the car, you have a very small window of time to try and get it back. You should contact the lender as soon as possible after they repossess it if you want to try and get the car back.
Most lenders will agree to return the car if you bring the loan current, which involves paying all the payments you have missed at once. They might also charge you any costs related to the repossession and storage fees.
If you can’t pay the amount they’re asking for, they’ll send the car to auction. Once they’ve sold the car at auction, you won’t be able to get your car back.
What Happens After A Lender Repossesses My Car?
After the lender repossesses your car, it will send it to the auctioneer. They’ll sell it to the highest bidder and apply the money they get to your loan. Shortly after they sell it, you’ll get a letter telling you how much you still owe. On top of the loan, they’ll tack on the cost of the repossession and the auction.
Once you get that bill, there are a few things you can do:
- Offer them a settlement amount to satisfy the loan in full. Basically you’re telling them you’ll give them a lower amount than they say you owe in exchange for the loan being paid in full.
- Ask if you can set up a repayment plan. In this scenario, you set up a new contract to pay the loan balance. This is usually a good option if you don’t have the ability to offer them a large amount of cash to settle the debt.
- You can sue them if they broke the contract when they repossessed the car or violated any consumer protection laws.
- File bankruptcy. Bankruptcy is the most powerful tool there is to eliminate overwhelming consumer debt, like car loans, credit cards, medical bills, and personal loans.
What Happens If I Am A Co-Signer For A Car That Is Repossessed?
Regardless of what they told you at the dealership when you helped your friend buy a car by being a co-signer, you’re on the hook for the full amount of the loan if your friend stops making payments. There is no such thing as a “primary” borrower when a co-signer is involved. Both of the signers are on the hook for the full amount of the loan until it gets paid in full.
Unfortunately, the lender will want the balance of the loan. It will come after you and the primary customer for the loan for the full amount of the loan. It won’t come after you for just half of the balance.
The lender can take every action it would take against the other borrower against the co-signer. It will report the missed payments on their credit report, file a lawsuit to get the balance, and even garnish their bank account and paycheck.
One last thing, if the borrower files a Chapter 7 bankruptcy, the lender can still go after the co-signer to collect the debt. A Chapter 13 bankruptcy might protect the co-signer, but only if the borrower is paying 100% of what he owes to the car lender. In my experience, it is very rare for someone to file a Chapter 13 solely to protect a co-signer. Personally, I probably wouldn’t advise someone to file a Chapter 13 for that reason alone.
Will Bankruptcy Stop A Car Repossession In Colorado?
If you have the car when your bankruptcy case is filed, the lender can’t repossess the car without the bankruptcy court’s permission. They have to hire a lawyer to file a request with the bankruptcy court to allow them to take possession of the car.
If the car has already been sold when you file bankruptcy, Chapter 7 bankruptcy will eliminate your liability of any remaining loan balance.
Chapter 13 bankruptcy will allow you repay the balance of the car loan according to your ability, if the car has already been auctioned off. If you still have the car when you file Chapter 13, you might be able to reduce the amount of the loan remaining by “cramming down” the loan over the three to five years of your Chapter 13 repayment plan.
Chapter 13 bankruptcy may also allow you to recover a car that has been repossessed but auctioned. The Chapter 13 bankruptcy has to be filed before the auction. Again, though, I don’t think I’d advise someone to file a Chapter 13 if the only reason is to get a car back. Instead, I’d advise filing a Chapter 7 to eliminate the loan and then getting a new car after filing a Chapter 7 bankruptcy. You would be shocked at how easy it is to get a car loan a week after you file a Chapter 7 bankruptcy.
Talk To An Experienced Bankruptcy Attorney About How To Stop A Car Repossession In Colorado
We have helped more than a thousand people just like you navigate the Chapter 7 and Chapter 13 bankruptcy process in Colorado. Bankruptcy can help you keep your car and eliminate overwhelming credit card, medical, and personal loan debt. We offer free consultations with an experienced Denver, Colorado bankruptcy attorney to people who would like to know if bankruptcy is a good option for them. The easiest way to schedule an appointment that is convenient for you is by going to our scheduling page.
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