How To Handle Car Repossessions

Car repossessions happen when the car owner defaults on monthly payments. Property like vehicles is often bought with a loan from creditors. Buying on credit enables low-income earners to purchase items they would otherwise not be able to afford. A vehicle is a must-have basic property for most Americans. Sometimes it becomes hard to keep up with payments. When this happens, the creditor may give you a warning or just seize your vehicle without warning. If this happens, don't lose your head. The creditor has a right to seize your vehicle when you are lagging behind in payments. The state law under which you fall, and the contract agreement between you and the creditor, are supportive of this action. Most car owners don't realize this.

The repossession of your car can be prevented. You need to know your rights. Read your sales agreement contact to know what your rights are and know when they can do a repossession. You can also consult your attorney of your rights in your state. Each state will have their own laws on car repossession.

You are a liability to the creditor if you stop making payments to your loan. Remember that you can talk to your creditor. There is a repayment contract in place, but the creditor may decide to help you and change the terms. As soon as the creditors does that the original contract is not applicable and not valid anymore.

Creditors may not just repossess your car. They must follow the rules of the state. If they fail to do that you may claim damages from creditor. Consult with a local attorney about your rights and claims you can make if they were repossessing your car above the law.

The creditor will sell your car on action after the repossession. Ask the creditor for the date of auction and location. They must give you the details encase you want to attend.

Even after your car has been repossessed you can still get it back. There are 2 ways of getting your car back. You can pay all the arrears or repay the total outstanding amount on the car. You will be billed for all cost as well.

Car repossession can be reversed if the creditor sells your car at a low unfair price. Upon repossession, the creditor is expected to sell your car at a competitive market price. If your car is sold at an unfairly low price, you must lay a claim against your creditor for prejudice. You may have been prejudiced of a small outstanding amount that could equal the selling price within a short period.

The creditor is liable for any damage to personal belongings in your car. All personal items must be returned to you by creditor. If there is any damage, you may claim compensation from creditor.

Creditors have a right to sue you for deficiency payment. A deficiency payment depends on the manner of car repossession. There are certain procedures which need to be followed by creditors when seizing a car. A violation of these procedures can result in the annulment of the deficiency claim. The deficiency payment is the difference between what you owe and the auction price of the vehicle. Most states have laws that protect consumers against deficiency claims. You should consult your consumer council about this.

When your car is repossessed it could lead you to court. You will get notice from the court messenger to appear in court for the deficiency payment. If the creditor did not act according to the law, you can make a counter claim and the creditors claim will fail and annulled.

Last but not least , do not hide your car. This is a criminal offense. You cannot go to jail for bad debt, but you can go to jail for a criminal offense. You can also hand over your car voluntary. This is call a voluntary surrender. When you fast repossession of your car or want to defense your case in court seek legal advice from your attorney.