What is vehicle payment arrears?
Having your own vehicle is a dream for many, it can be a sign of freedom, a way to earn your income or just make your everyday life a whole lot easier, its the goal of many to own a car or multiple cars but that being said many people extend themselves when it comes to buying a vehicle and as expenses rack up they see they cannot afford to keep hold or manage the payment for the vehicle.
Having outstanding car payments can get ugly and lead to plenty of problems and many times ending up in the repossession of the vehicle and leaving you with nothing at the end of the day.
Lawsuits are filed to collect these debts:
In the case of outstanding rent, the creditor may have the right to file a lawsuit against the consumer to force payment of the debt through a judgment.
The lawsuit must be served upon the debtor according to the service of process rules of the state in which the consumer resides. Then, the consumer can defend the lawsuit by asserting various defences such as fraud in the creation of the account, or that the amount sought after is incorrect or has been paid, to name just a few.
If the case is not properly defended, then the creditor will obtain a judgment in its favour. When the creditor has a judgment, it may seek involuntary means to force payment such as wage garnishment, asset attachment or lien on the property.
For more information, we recommend checking out our post on – How South African’s Can Avoid Losing Their Cars To Debt
How debt review can help those with outstanding vehicle payments
Using a Debt counsellors like ezDebt we will formally review your finances and develop a suitable monthly budget by negotiating with your creditors on your behalf
- Enables clients to make one monthly debt repayment
- Stops creditors from hassling you
- Decreases judgements against you
- Prevents you from declaring bankruptcy
- Maps out the path towards becoming debt free
- Gaurd against repossession of the vehicle
If you’ve fallen behind with your rent payments, you should take action quickly to deal with the situation.