How to Pay Debt Collectors for Car Repossession

Paying debt collectors for your repossessed car is one way to have it returned to you. If your car is sold by the debt collector, you still may owe the balance of the loan that was not satisfied by the sale. Whether you are paying the collection agent to retrieve your vehicle or satisfy a deficiency on your loan, it's important to know what to do so you no longer have to worry about being hounded by debt collectors.

Instructions

1

Pay back the entire amount due to get your car back after it is repossessed but before it is sold. You may owe your past-due balance plus fees to repossess and store your vehicle. Your lender should send you a notice about two weeks before your car will be sold. It will detail the total amount due and how to pay it to retrieve your car.

2

Call your lender and offer a new payment plan. You may be allowed to make additional payments in order to get your car back. If agreed upon, ask the debt collector to put the terms in writing. Make your payments on time to avoid having your car repossessed again.

3

Attend the car auction and buy your vehicle back. The notice from your lender should give you the information about when and where your car will be sold. You may have to pay the entire amount of your winning bid in cash.

4

File for bankruptcy if your car is in threat of being repossessed. Chapters 7 and 13 will stop debt collectors from taking your car back during bankruptcy proceedings.

5

Reaffirm your debt with Chapter 7 by continuing to make payments on the loan after you have been in default. Alternatively, Chapter 7 may allow you to negotiate a lump sum to pay for your car. It can be the amount of current market value instead of the debt owed.

6

Make a repayment plan with your debt collector under Chapter 13. Depending on how long you have owned the car, you may have to continue making payments toward your current loan balance or you may be allowed to make payments on the market value of the vehicle only.