Auto Repossession
Your vehicle may be repossessed if you fall behind in your auto loan payments. This can not only result in a major inconvenience, but it can also damage your credit score.
When facing vehicle repossession, you need help from Massachusetts auto repossession attorneys. Our experts at Daigle Law Office can help you review your options to keep your vehicle.
When Does a Car Repossession Occur?
Cars are repossessed by lenders when you fail to make your loan payments. This usually happens when payments are overdue for a significant period, often 90 days or more. The exact timeline is typically outlined in your loan details.
While the exact reason for car repossession can vary, the most common reasons are due to:
- Missed Loan Payments: The top reason is failure to make timely loan payments. When you take out a car loan, the car itself acts as collateral for the loan. If you don’t make payments, the lender can take back the vehicle to recoup their losses.
- Violating Loan Terms: Your loan agreement might have terms beyond just payments. For example, it might require you to maintain insurance coverage on the car. Failing to do so could also be grounds for repossession.
What to Know About Auto Repossessions
When facing a vehicle repossession, knowing what to expect is essential. Some key details about repossessions include:
- Repossession can happen without warning: Lenders don’t have to notify you before repossessing the car. However, they are required to follow specific legal procedures.
- Repossession hurts your credit score: Having a car repossessed can seriously damage your credit score, making it more difficult and expensive to borrow money in the future. This can make it harder to get another vehicle.
- You may have the right to get your car back: In some cases, you may be able to get your vehicle back by paying the overdue amount plus any repossession fees. Your attorney can help you review your options.
How Can Auto Repossession Be Avoided During Bankruptcy?
There are numerous ways to avoid vehicle repossession. Filing for bankruptcy is one option.
An Automatic Stay is implemented if a Chapter 7 bankruptcy has been filed. In most cases, a lender cannot repossess a vehicle or collect a debt.
During Chapter 13 bankruptcy, you will make up late or missed payments through your repayment plan. This will help you retain possession of the car when your bankruptcy is finalized.
Working with our lawyers at Daigle Law Office is essential to determine how to avoid a vehicle repossession during your bankruptcy proceedings.
Can the Court Grant Permission to Repossess the Vehicle?
Although you are protected under the automatic stay, you could still lose your vehicle. The lender can file a “motion for relief from stay” with the court. This motion allows the lender to have the right to repossess the vehicle based on missed or late payments.
You typically have 2 to 3 weeks to dispute the motion. The judge might deny the motion if you can prove the lender made a mistake or the payments were mishandled. The judge might also let you work with the lender to form your agreement.
Why Hire Us to Help You Avoid an Auto Repossession?
Call our trusted auto repossession lawyers at Daigle Law Office if you are behind on your auto loan payments. We can review your auto loan agreement and missed payments and help you find the best option to avoid vehicle repossession.
To schedule a free consultation, please call Daigle Law Office today at 508-771-7444
