As the COVID-19 pandemic continues to impact the economy, many car owners in Illinois have been wondering about the status of vehicle repossessions. In May 2020, Governor Pritzker issued an executive order that temporarily halted repossessions, but this restriction expired on August 22, 2020.
Repossessions Resume in Illinois
Since the expiration of the executive order, auto lenders and other creditors have been able to resume repossession efforts in cases where debtors have defaulted on loan payments. However, some recovery agents have expressed concerns about the potential dangers of repossessing vehicles during the pandemic.
Alternatives to Repossession
In many cases, loan modifications may be the best option for helping debtors address missed payments and other issues that affect their ability to repay an auto loan. Creditors may offer modifications such as the forgiveness of late fees, the deferral of missed payments, or the extension of the term of a loan. By providing options to debtors, this may encourage them to continue making ongoing payments and avoid a repossession while minimizing the creditor’s financial losses and the hardship experienced by the debtor.
While creditors may have options for collecting debts, repossessing vehicles or other property, or seeking judgments against debtors, they may want to avoid taking actions that could put people at risk of harm. By understanding whether alternatives to repossession may be available, creditors can determine the best ways to reach agreements with debtors, avoid the time and expense involved in taking legal action, and find solutions that will protect against future financial losses.