Can Automobile Repossession Be Stopped?
When you get behind on the payment of a debt which is secured by a security interest or lien on your car, furniture, jewelry, or other personal items, the creditor can proceed to repossess these items. Upon repossession, the items are sold and proceeds are credited to the amount you owe. If the sale proceeds are equal to or greater than the debt, you have no further liability. If the sale proceeds are less than the debt, which is quite often the case, you owe the amount of the deficiency. Like any other debt, the creditor can take whatever collection actions it deems appropriate, including filing a lawsuit against you. The filing of a debt consolidation petition may give you the opportunity to stop the repossession, keep the item and pay for it under controlled circumstances at a rate you can afford.
