When a lender takes back property that was used as collateral or leased in a transaction, it is known as repossession. If you default on a car payment, the lender that financed it has the right to repossess your vehicle at any moment. Repossession notice in Pennsylvania is not required by law. This is a one-of-a-kind area of the law, and one of Pennsylvania’s more aggressive collecting operations.
You presumably signed a purchase contract or a credit contract to finance your automobile when you bought it. The buyer agrees in these contracts that the seller, commonly known as the “lien holder,” has the right to seize the property at any moment if the buyer falls behind on payments. Although most lenders give you a little grace period, some lenders will leap at the chance to repossess your car. These contracts may also include fines and penalties that the buyer must pay to cover repossession charges as well as the vehicle’s reduced worth.
When your lender decides to repossess your vehicle, they normally hire a repossession agent to help them. The majority of repossession companies specialize in auto repossession. When a vehicle is repossessed, the agent usually hires a tow truck, though some agencies may notify the owner and try to arrange a smooth return with no surprises.
The repossession process has resulted in the loss of many of our clients’ vehicles. Some of them were only a few days late. Small lenders and banks are notoriously aggressive, and they will promptly exercise their repossession rights.
Bankruptcy Can Save Your Vehicle
Your alternatives are severely limited once your car has been repossessed. You have two options at that point: pay the debt outstanding (which is probably not an option) or file an emergency Chapter 13 bankruptcy. Once they repossess your car, unfortunately, time is not on your side.
You just have 10 DAYS after the repossession to apply for Chapter 13 bankruptcy and save your car. The vehicle will be auctioned after this time period has passed. You may be accountable for the balance outstanding if the lender fails to recoup the amount owed on the vehicle at auction.
Contact Easton Bankruptcy Lawyer for a FREE CONSULTATION at 610-770-7113. You can depend on Easton Bankruptcy to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.