Wootton & Wootton, P.C.

Bankruptcy Help For Everyday People

Call Today For a Free Consultation
919-794-8660

Bankruptcy & Estate Planning Help For Everyday People

What to do if you fall behind on your car loan

If you are like most people, having a reliable form of transportation is as crucial as shelter and food. You need your car to get to school or work or both. Without a vehicle, it would be hard for you to make a living and get around. When you get in trouble with your auto loan, you may fear losing your car.

Fortunately, you have options if you start falling behind on your car payments. Here are some tips for getting back on track and avoiding involuntary repossession.

Talk to your lender ASAP

If you are suddenly having difficulties keeping up with your car loan, you should reach out to your lender immediately. According to Auto Trader, most lenders want to work things out with people who are falling behind on car payments. As soon as you fall behind on a payment, take action.

The sooner you communicate with your lender, the better. Earlier contact means you will have more options to come to a solution. You may be able to negotiate your interest rate, extend the duration of your loan with a lower monthly payment or request a deferral. Your lender wants to keep your business, even if you struggle temporarily. 

Trade in, sell or file for bankruptcy

If your financial troubles seem like they are going to be a long-term problem, you may have to consider taking a bolder action. For example, you may be able to trade your vehicle in for something cheaper. Another option is to sell your car to get out of a hefty loan. However, if you want to keep your, you can declare bankruptcy. Bankruptcy is not as scary or damaging as it may sound. It can help you keep your car and reorganize the payments so they are manageable. You may also be able to have your debts discharged.

There are resolutions if you fall behind on your payments–do not think that repossession is necessary.

No Comments

Leave a comment
Comment Information

Start Planning For The Future Today

Want to get out of debt? Create a will? We can help.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Durham Office
3200 Croasdaile Drive
Suite 504
Durham, NC 27705

Toll Free: 800-610-3643
Phone: 919-794-8660
Fax: 919-382-2042
Durham Law Office Map

Henderson Office
1775 Graham Avenue
Suite 104
Henderson, NC 27536

Toll Free: 800-610-3643
Phone: 919-794-8660
Fax: 919-382-2042
Map & Directions