In today's economic climate, many Birmingham residents are facing financial difficulties and are unable to make all their monthly payments to their creditors. It's important to know that secured lenders have special rights to their collateral should they miss payments on a loan. For example, if a lender defaults on a car loan, eventually the lender will have the vehicle repossessed.
With many in Alabama struggling with financial challenges, citizens are searching for ways to get into the clear. In Alabama, there is a growing trend in the loan industry: Many people are applying for car-title loans, which requires them to surrender their car title as collateral. If the loan is not paid back to the lender, then auto repossession may be initiated in order to satisfy the loan.
For individuals in Alabama who are unable to keep up on car loan payments, bankruptcy may be an option. Once a person files bankruptcy an "automatic stay" will go into effect stopping all collection efforts, including vehicle repossession. Although those efforts may start up again, causing an individual to lose their vehicle, it gives consumers the time to make decisions that are best for them.