If you purchase a vehicle on credit, the creditor will retain certain rights and an interest in the vehicle until it has been fully paid off. After paying the initial deposit, the remaining amount is repaid through installments. While defaulting in a single installment payment may be okay, defaulting in two or more repayments will often expose you to a real possibility of repossession. However, you may prevent repossession by filing for bankruptcy under chapter 7 or 13; this places an automatic stay on repossession actions, foreclosures, garnishments and collection lawsuits. If your car has already been repossessed or you are being threatened with repossession, you may want to hire a Repossession Lawyer, due to the following reasons.
To contest an unlawful repossession
If you have reasons to believe that your vehicle was taken illegally, you should consider consulting with an attorney. The attorney will easily recognize the actions that constitute an illegal repossession and raise the issue with the lender. Repossession is deemed to be illegal if:
1. There was a breach of peace when taking the vehicle, including the use of violence, threats, breaking into a locked garage and damaging property among other things.
2. The repossessed vehicle has no valid security interest in the presently defaulted loan.
3. Where you have not defaulted with your payment.
In the event that the lender is adamant to consider your position, the attorney will advise you on whether to file a lawsuit in court to get your car back.
To avoid a deficiency judgment
Once your lender has successfully repossessed your car, they will most likely sell it off at an auction. If the proceeds from the car are insufficient to cover the loan, the lender may sue you to collect the deficiency. A deficiency judgment will expose you to garnishment of your wages among other penalties. However, if you hire a lawyer, they may raise various defenses including limitation of time and illegal repossession. The lawyer may also show that the lender did not sell the car in a reasonable manner by following appropriate procedures.
If your car, motorcycle, van, SUV or any other motor vehicle has been repossessed by your lender, you will find that it is worth paying for an attorney to assist you. To access a competent Repossession Lawyer, contact Hitchcock & Associates, P.C. Visit us to learn more.
