The past couple of years have been difficult for almost everyone. For example, suppose you had bought a vehicle and unfortunately lost the job. In that case, there can be considerable doubt regarding your options. Therefore, if you wish to keep your car and you cannot keep up with your payments, you need to contact the lender immediately to find out if any payment forbearance program is available which allows you to forego some payments. Apart from this, you should also find out from your former employee whether any insurance on your behalf (paid by the employee) covers this issue. The last thing to do is to go through your loan documents to find out if any additional coverage had been taken to cover payments in case of a job loss.
If you decide to return the car, you can sell it after removing your personal property from the vehicle. However, your car lender can seize the vehicle if you do not plan to make payments for it. The vehicle is taken to an impound lot, where eventually it is auctioned to recover the money. Any fees for seizing, storing, and auctioning the vehicle are added to the outstanding balance. The process takes a lot of time. However, once the vehicle is sold, the collection agency pursues any outstanding dues pending. Involving a lawyer is recommended in this case, especially if you have been served a judgment for the same.
Once the judgment is entered, the creditors can take actions against you, including wage garnishments. However, it takes a long time to happen. If you face financial issues, it is important to plan your expenses according to a budget. In case of a job loss, you need to focus on essential items like food, rent, and utilities instead of your credit score. Although your car is important, but not enough to tank your family’s finances. Hiring an attorney can help you get through this problem. However, you must take control of the situation before things go out of hand. Taking preventive measures if you have been hit financially is important, especially before things go out of hand.