subject: Debt Help for Car Repossessions [print this page] Dealing with debt in the aftermath of the car repossession process is hardly free of stress. The pains and woes of being buried in debt can affect not only your finances but also your mental and physical health. Rather than let the problem remains out of your control, it would be best to look towards debt relief solutions.
There are different ways repossession steps are taken. Most are familiar with involuntary repossession which is when your property is taken back due to failure to make timely payments. Voluntary repossession would be when you return the property on your own. And then there is deficiency repossession where your property is reposed and sold at an auction for lower than the full payback amount on the loan.
Regardless of how the repossession occurs, the debtor will assuredly remain in a serious financial situation. To reverse such a serious problem, it becomes best to look towards alternate means to improve the situation. Unfortunately, many will make the wrong selection of what strategy to employ.
Filing for bankruptcy is an option that is frequently explored but it is definitely not always the best option. When you file for bankruptcy, your personal credit rating is devastated for 10 years. You may also have to submit your disposable income to a trustee for several years. Worst of all, most people file bankruptcy when there were other, better methods available. National debt relief services might be able to offer the best options for someone dealing with repossession related debt.
Debt settlement may be the best option to explore. The way this process works is that the debtor would make a settlement on the remaining balance. Usually, this will be 40% - 60% of the amount owed. The lender may be concerned about being unable to collect if the borrower files for bankruptcy. As such, debt settlement may prove to be an acceptable solution.
