Summary
Highlights
Car repossessions are at an all-time high since the 2008 mortgage crisis, exacerbated by the pandemic and high inflation. Many people are struggling to keep up with car payments, leading to economic distress.
To remove a repossession, first examine your credit reports. A repossession can appear as a charge off, a collection, or both. Dispute any inaccuracies, especially if both the charge off and collection show balances owed. Ensure the charge off shows a zero balance if the debt has been sold to a collection agency.
If you observe that the credit bureaus are still expecting a monthly payment on a charged-off account, dispute this, as it is likely an attempt to keep your credit score artificially low.
Car lenders must provide specific notices before and after repossession, including payment status, redemption balance, and auction details. Request the original contract and full payment history to identify errors and verify the date of last payment.
Check with the IRS to determine if the lender wrote off the debt and issued a 1099-C form. If the debt has been discharged and you received a 1099-C, you may no longer owe the debt.
Explore avenues for additional income to cover car payments. Consider renting out your car through platforms like Turo, utilizing car wrapping for advertising revenue, or using your car for deliveries via services like Uber Eats.
Become a field inspector on a part-time schedule, working for mortgage companies, insurance companies, and lenders to assess properties or equipment. This flexible work can provide extra income to help maintain your vehicle.