Preventing a car from being repossessed Lawyer Manual

• Keep up with payments. Contrary to popular belief, a secured creditor can repossess a vehicle even if the debtor is behind on one payment. Other than basic necessities, secured interests should be a higher priority in paying bills than unsecured debts;
• Debtors also can negotiate a work-out plan with the creditor, but in doing so, the debtor should be mindful of possible increased costs, such as higher interest rates or amounts. It is also important to get any work-out agreement in writing. Sometimes, the creditor will agree to accept late payments and then repossess prior to the agreed date. This deceptive practice is called "gab and grab" and may violate the Illinois Consumer Fraud Act. 815 ILCS 505/;
• Debtors can try to sell the car before it gets repossessed, but typically, the debt is more than the car is worth, so the debtor will have to pay something above what they get from the sale in order to satisfy the lien;
• The debtor can offer to return the car to the creditor, but this should be done only if the debtor gets a written agreement saying that the debtor does not owe anything more on the debt, or some other favorable arrangement for the debtor;
• Repossessions in breach of the peace are unlawful, and thus, a debtor can prevent one by firmly objecting in person when the repo man shows up or by keeping the car in a locked garage or behind a locked gate. Note that repossession agents frequently will repossess a vehicle from the debtor’s place of work;
• Assuming a bankruptcy is otherwise warranted, the filing of a bankruptcy before the repossession triggers an automatic stay which prevents a creditor from taking action against property;

Of course, the debtor can also try to hide the car, but this is often not very practical. Some debtors temporarily “trade” vehicles with close friends or relatives until they are able to negotiate a resolution with the auto dealer or finance company. No Illinois law prohibits the concealment of property under a lien. However, if the creditor cannot locate the car, it may file a detinue action to recover it.