Can’t seem to make the regular payments on your car, motorcycle, truck, etc? If so, you might be in danger of repossession.
In some cases, you can recover your car after repossession if you file before the bank auctions your car. If you file for bankruptcy correctly, you will be allowed to keep or recover your vehicle, catch up on your payments, and take control of your financial future.
What Exactly is Repossession?
Repossession is a legal process where a creditor collects your valuable property (usually your vehicle), if you’ve become delinquent on your payments.
A creditor can repossess your car if:
- you miss only one payment
- you violate the contract in any way
- without any advanced notice
What Happens When a Vehicle is Repossessed?
It’s not actually the creditor that comes to get your car, but someone who works for the creditor, called a “repo man.” It is the repo man’s job to tow your car away, without “breaching the peace”, meaning that they may not…
- break into your house
- remove you from your vehicle
- stop you on the street or highway
- enter a closed garage
- threaten you with physical force
- threaten to do any of the actions above
This is why repo men usually come to get your car in the middle of the night, or while you’re at work. If they are able to successfully take your car away, they will tow it to a storage lot. Subsequently, you will receive a letter from the creditor, letting you know that you have 10 days to pay off your car, or else it will be sold at an auction.
Stop Repossession Immediately!
Filing for bankruptcy will give you an “automatic stay,” that forbids your creditors from contacting you or repossessing your vehicle, and you will receive more time to catch up on your payments.
Even after you’ve filed for bankruptcy, some creditors might still tow your car away and and hire a lawyer to defend them in court. This rarely works though, as the judge usually orders the creditor to return the car.
All in all, filing for bankruptcy is the best way to keep your car in your hands, when you’re a little too short on cash.
If you fear that your car might be taken away, or just have some questions about repossession and bankruptcy call us today: 404-763-3623 or send us an email. Your initial consultation is free.