If you are behind on your car payments, the lien holder has a right to repossess the car. The lien holder might send you a Right to Cure Letter prior to the repossession. This letter will inform you that failure to pay will result in repossession of your car.
Read the entire Right to Cure Letter letter immediately. The letter will specifically state how many days you have until the car is repossessed, which is usually anywhere from 5 to 20 days, depending on where you live.
Take some time to think about your financial situation and determine whether or not you are going to be able to make the monthly payments on time.
Respond to the letter. Call the lien holder and speak to them about your financial situation. The lien holder will discuss your options with you. You must respond before the end of the cure period, which is listed in the letter.
Get everything in writing if you are able to make payment arrangements with the lien holder. Ask them to send you a copy of the agreement. Also, document all correspondence made between you and the lien holder (phone calls, letters and emails).
Speak with a Certified Credit Counselor, which you can find at the CCCS website, if you are unable to work out a payment plan with the lien holder (see Resources below). A Credit Counselor can advise you on debt management. Also, the counselor will often try to arrange a repayment plan that is acceptable to you and your creditors.
Return the vehicle to the lien holder. If you feel that you cannot afford the payments on the vehicle, then you should call the lien holder and ask them to pick it up. If you return the car, it will appear in your credit file as a voluntary repossession.
