Repossession is a process where an auto lender can take back your vehicle sometimes without warning you in advance or having permission from the court. Vehicle repossession laws vary by state, but your vehicle purchase contract should include details about how and when your auto lender can repossess your vehicle.
There are two major types of repossession. Voluntary repossession is when you give your car back to the lender. With involuntary repossession, the lender comes to take back the car. During an involuntary repossession, the lender can take the car from your property without your permission as long as they do not disturb the community.
If your vehicle is repossessed - either voluntarily or involuntarily - your auto loan is not canceled. Unfortunately, you still owe the balance due on your loan even after the vehicle is repossessed. Your auto lender can continue to collect on the auto loan. They can even sue you for a deficiency judgment which will include the balance due on the loan and costs associated with repossessing the vehicle.
If you are facing repossession of your car or your car has already been repossessed, do not give up hope. The proactive and timely filing of a bankruptcy can not only stop repossession actions but sometimes also even result in your already-taken car being returned to you.
At The Law Offices of Camille Sebreth PLLC, we strive to make a significant impact on your life. Oftentimes, this means protecting your most valuable and necessary assets, including your car which you may need for transportation or to get to and from work.
Repossession has a negative impact on your credit. First, the late payments leading up to the repossession will damage your credit score. Then, the repossession itself will be listed in the public records section of your credit report. If the lender obtains a deficiency judgment for the balance of the auto loan, that judgment will also go on your credit report. These negative items will remain on your credit report for seven years.
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