If you own an airplane, you know how expensive it can be to maintain and pay for its fees and taxes. Sometimes, you may find yourself in a situation where you can't afford to keep up with your payments and risk losing your airplane to repossession. This can devastate your finances and lifestyle, mainly if you rely on your aircraft for business or personal travel. However, there are some steps you can take to prevent this from happening and keep your airplane from being repossessed.
Contact Your Lender as Soon as Possible
If you are having trouble making payments, don't wait until you miss one or more deadlines. Contact your lender. They may be willing to work with you and offer some options, such as refinancing, extending the term, lowering the interest rate, or modifying the payment schedule.
Negotiate a Settlement or a Payoff
If you have cash or can sell some assets, you can negotiate a settlement or a payoff with your lender. This means that you pay a lump sum less than the total amount you owe, and they agree to release the lien on your airplane.
This can save you money and avoid repossession, but it may also affect your credit score and have tax implications. Ensure you get everything in writing and consult a professional before agreeing. You should also have the agreement looked over by an attorney.
Cooperate with the Repossession Agent
If none of these steps work and your airplane gets repossessed, cooperate with the repossession agent and hand over the keys and documents of your aircraft peacefully. You may be able to get it back later if you pay off your debt or redeem it during an auction.
Work with an Airplane Repo Attorney
An airplane repo attorney can provide valuable assistance to aircraft owners and lenders. These attorneys specialize in the complex and often challenging process of repossessing airplanes that a lender has defaulted on or taken possession of.
The airplane repo attorney can guide you through the legal maze of repossession, helping them to understand your rights and obligations under state and federal laws. They can also help you negotiate with lenders and other parties involved in repossession, ensuring your interests are protected.
Losing your airplane to repossession can be a stressful and painful experience, but it doesn't have to be the end of the world. By taking these steps, you may be able to prevent it from happening or minimize its impact on your life.
Contact an airplane repo attorney to learn more.
Share28 June 2023
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