You would be hard-pressed to find anyone who is not affected by what is happening with COVID-19 right how. At The Law Offices of Paul Y. Lee we know that people who were already having a hard time paying their bills may be feeling a real pinch now that their work is on hold or reduced. This leaves many wondering: What are my options if I cannot pay my car payment? Keep reading to find out and then contact us at 888-748-0025 if you believe bankruptcy may be a good option for you.
Car Loans Are a Unique Type of Debt
While there has been plenty of conversation around how the government is going to help homeowners, those paying student loans, etc., there has been less discussion about how car loans are going to be made. This is actually a unique situation because the creditor who extended the loan has a lien against your vehicle and it is within their rights to repossess your car if you do not pay them.
The fact that various courts or closed, and the fact that you may no longer have a paycheck to garnish – both of which can limit other types of creditors – does not necessarily mean that you are protected as a person who needs to make car payments. As of the date of writing this blog, there is no government protection for repossession.
Many Car Lenders Are Offering Help to Borrowers
Edmonds initially created a list – and updated it frequently – to show which car lenders were offering help and how to get it. As of March 31st, Edmonds appears to not only have stopped updating the site but to have deleted it altogether. However, you can find out if your lender is participating by googling your lender with the phrase “COVID-19”. You should find information on whether or not they are offering assistance to their borrowers.
How to Contact Your Creditor
Most creditors require their borrowers to contact them via telephone. As bankruptcy attorneys who have seen it all, we strongly recommend that this is not the only way you contact your creditors. Every time you speak to them, write a short letter with all the information about the call. This includes the time you called, any confirmation number you received, whom you spoke to, and the results of your call. Keep a copy of this.
If you want to ensure you are fully covered then you may want to work with an attorney. This is especially true if you were behind on your car payments before this crisis hit. If you think that bankruptcy may eventually be the right choice for you, then we recommend you contact The Law Offices of Paul Y. Lee at 888-748-0025 for a free consultation.