An airplane is a big investment that you'll want to protect by avoiding repossession. Unfortunately, airplane owners sometimes make mistakes that compromise the investment they've made in their aircraft. The following are six of the biggest mistakes you could make when your airplane is at risk of repossession.
Ignoring your airplane repossession risk
You should take action immediately when you become aware that you're at risk of airplane repossession. An airplane is an expensive asset that you have to invest a lot of money in. Losing your airplane to repossession can be financially devastating. That's why you shouldn't ignore your repossession risk and should do everything you can as quickly as possible to avoid repossession.
Failing to simply reach out to your lender for an extension
In a lot of cases, all you have to do to avoid repossession is reach out to your lender. Letting your lender know that you're behind in payments and agreeing on a new payment schedule could stop the repossession process so that you're no longer at risk of losing your airplane while you bring your aircraft purchase loan current.
Being unfamiliar with the laws in your state
Repossession laws vary by state. You should familiarize yourself with aircraft repossession laws in your area immediately when you become aware that you're at risk of repossession. Familiarity with repossession laws makes it so that you know what to expect and can plan accordingly.
Not hiring an attorney to protect your airplane
You should definitely hire an airplane repo attorney if your aircraft is at risk of repossession and you're unable to bring any outstanding debt you owe for your aircraft current. An airplane repo attorney can provide you with various solutions that you can take advantage of to avoid repossession.
Putting little or no thought into budgetary measures
If you're behind on payments for a loan you took out to buy an airplane, you should reevaluate your budget. Budgetary measures could make it possible to start making payments on your loan again and eventually bring your loan current so that you are no longer at risk of repossession.
Failing to consider the potential advantages of selling your airplane
It might be in your best interests to sell your airplane if your airplane is at risk of repossession. Selling could be a great idea if you don't need your airplane at the moment and failing to stay current on payments will be highly damaging to your credit.
Contact a local airplane repo attorney to learn more.