You can best stop a car repossession by immediately paying delinquent car loan payments and communicating with the lender before repossession is arranged. If doing so is not possible, giving the car back to the lender through what is called voluntary vehicle repossession will stop additional fees from accruing against you. You will still be responsible for paying amounts originally agreed to in your contract, however, as well as any additional fees assessed before the car’s return.
One of the ways in which you can stop a car repossession is by communicating with your lender why your payments are past due. Sometimes lenders will allow a forbearance, which is simply factoring your outstanding payments back into the total balance of the auto loan. This will extend the time you have to make payments on your car, but as long as future payments are made in a timely fashion, you can avoid involuntary vehicle repossession.
Another way to stop a car repossession is to refinance the loan on the car. This may be done either through the current lender or through a new lender. Often, because you now have less to pay on your total balance, this may reduce your monthly payments, while at the same time stopping a pending car repossession.
In cases where the lender actually sends a tow truck for car repossession, there are things that you can do to stop your vehicle from being taken. While the lender does have the right to repossess your vehicle and can even come on your property to do so, a car repossession can only take place without disturbing the peace. Some people have blocked their vehicle from being taken by physically sitting in or on the car and refusing to move, as a person sent to repossess a vehicle is not allowed to physically force a person out of the way while seizing a vehicle. Car repossession laws vary by jurisdiction, so becoming familiar with the laws in your area is best when determining how to stop an auto repossession.
Under certain circumstances, filing a bankruptcy may stop a car repossession. Bankruptcy is a serious legal action used to stop creditor collections while a person or business regroups and receives guidance from a court-appointed trustee in resolving debts. This method can, however, be very damaging to one’s personal credit score. Speaking with a qualified professional prior to filing a bankruptcy is always a good idea.