Auto Loan Debtors Relief in Springfield

A car is not a luxury for most Springfield residents. It is an essential that enables them to get to work to support their family.

Most people have to take out an auto loan to buy a vehicle, sometimes at high interest rates. If your financial circumstances take a downward turn, making the payments can become a struggle. The lender might try to repossess the vehicle or sue you.

If you need auto loan debtor’s relief in Springfield, contact our office. Our experienced debtor’s relief attorneys can help you resolve the debt as inexpensively and efficiently as possible.

Responding to Repossessions

Repossession is a powerful tool lenders use when borrowers default on their car payments in Springfield. A lender may not begin the repossession process until a borrower is in default for at least 10 days. At the 10-day mark, Missouri Revised Statutes  §408.555(1) requires the lender to send a right to cure letter.

The letter must specify the total amount the borrower must pay to bring the loan current. If the borrower does not cure the default within 20 days from the date of the letter, the lender may repossess the vehicle and sell it at auction. The borrower remains responsible for any outstanding balance after applying the sale proceeds to the loan.

A borrower who has received a right to cure letter should contact an attorney immediately. A legal professional may be able to negotiate with the lender to forestall repossession temporarily. If a repossession has already occurred, an attorney could review the documentation and lender‘s file to ensure the lender met all the legal requirements for repossession.

Commercially Unreasonable Sales

After the repossessed vehicle is sold at auction, the borrower will receive a statement of the sale price and a demand for any remaining loan balance.

Reviewing this statement carefully is important. If the sales price does not reflect the vehicle’s actual value or if fees and other charges are excessive, a legal professional can intervene. A Springfield car loan debt attorney can assist in negotiating a lower settlement amount with the lender.

Do Not Ignore a Summons

If the lender cannot locate the vehicle or deems it not worth repossessing, the lender may file a lawsuit against the borrower. In some cases, the lender sells the debt to a collection agency, which then files the lawsuit.

Borrowers often make the mistake of ignoring a summons. When they do not respond, the court enters a default judgment against them. Working with a Springfield debtor’s attorney with experience in auto loans is a better strategy.

The legal professional can file an answer and appear in court to defend the lawsuit. Often, the lender or debt collector assumes they will receive a default judgment and is unprepared to prosecute the case. They are frequently willing to withdraw the lawsuit or negotiate a settlement for a small percentage of the amount they originally sought.

Fight Debt and Auto Lenders With a Springfield Attorney

If you are like many people, your car is one of your most important possessions. Without it, you cannot take care of yourself or your family.

If you are falling behind on your payments, your lender has threatened repossession, or you are being sued, contact our office immediately. We can help you get auto loan debtor’s relief in Springfield.