You stopping payment on your car loan can trigger a repossession. After taking back a car, auto lenders might sell the car at auction. But having your vehicle sold at auction doesn't let you off the hook. If the car sells for less than you owed, the lender may begin collection to recover the deficiency balance.
Instructions
- 1
Discuss your financial situation with your auto lender to see if there's a chance it will forgive the outstanding balance and cancel the debt. Explain circumstances such as job loss, illness and disability.
2Review your monthly finances to determine how much you can afford to spend repaying the debt. Talk to your lender about an installment plan early in the collection process. Propose a monthly installment amount, and then wait for your lender to accept the offer or counter with another payment amount.
3Contact an attorney who handles bankruptcy proceedings to discuss bankruptcy options. Provide the lawyer with a list of your debts and information about your assets. Filing for bankruptcy immediately halts collection agencies and creditors from contacting you about a debt.
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