Understanding Repossession in North Carolina

Submitted by Law Office Blogger on Mon, 03/04/2024 - 11:01am

No Right to Cure: North Carolina doesn't have a "right to cure" law for vehicle repossessions. This means your lender can repossess your car without notice if you fall behind on payments.
Contract Terms: Your car loan contract outlines the default terms and whether you have any grace period to catch up on payments before repossession.

Be proactive: Reach out to your lender the moment you realize you might miss a payment.
Explain the situation: Be honest about your financial difficulties and see if you can work out a temporary solution.
Possible Options:
- Temporary deferment of payments
- Modification of your loan terms

Refinance Your Loan: If your credit has improved or interest rates have gone down, you might be able to refinance your loan with better terms, lowering your monthly payments.
Sell the Car: If you can sell the car for more than you owe on it, you can pay off your loan in full and avoid repossession.
Voluntary Surrender: While not ideal, voluntarily surrendering your car to the lender can help you avoid additional repossession fees and damage to your credit.
File for Bankruptcy: Filing for bankruptcy triggers an automatic stay, which stops creditors from repossessing your car. This can provide time to reorganize your finances. However, bankruptcy is a serious decision with long-term consequences.

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