How to Stop Reposession

Your lender has the option to repossess your home or vehicle if you fall behind on your payments. You can also be on the hook to lenders and may have to provide your possessions as collateral. Your possessions will be put up for sale at an auction and you can still be liable for repaying the balance of the loan. When making payment arrangements with the creditor isn't enough, bankruptcy is the only option. Bankruptcy will damage your credit rating for seven years in North America. Repossession also damages your credit score for seven years.

Instructions

1

Contact a bankruptcy lawyer to begin filing for Chapter 7 bankruptcy. Bring a list of all your liabilities and assets to your lawyer. You will be assigned a case number when bankruptcy has been filed. This number corresponds to your file in court documents.

2

Call your creditors to ensure they are aware that you filed for Chapter 7 bankruptcy. The court is responsible for notifying all your of your filing. A Stay will be issued by the court, prohibiting creditors from repossessing your items. Any phone calls, legal action, written correspondence or repossessions are not allowed.

3

Give your lender all the information about your bankruptcy. Your lender will need to contact your attorney. Be ready to provide the phone number. The lender is responsible for contacting the repossession company to cancel the seizure.

4

Figure out how you will pay the loan. You still have to pay for your home or vehicle, unless you turn it over to the lender, in which case they will sell it and take the money that you owe. You can strike a reaffirmation agreement with the lender, which will keep the home or car in your possession if both parties can agree on a repayment schedule.