You are surely not blessed if you are dealing with vehicle repossession, but this definitely doesn’t mean that you should lose your head. I do know what kinds of questions are busing your mind right now, but let’s calm down and answer them one by one.
I hope that you know what vehicle repossession is and even I expect you to know that your car will be repossessed beforehand, because car repossession can’t occur without a reason. However if you don’t own this information read the previous post and find out what is vehicle repossession and what are your and the creditor’s rights.
Here is the list of possible questions that may interest you during car repossession.
Should the creditor win a judgment before vehicle repossession?
In the most states they needn’t. It is required only in Louisiana and Wisconsin.
What notices should I receive if my vehicle is repossessed?
Before vehicle repossession, the creditors don’t have to inform you in advance that they are going to take your car, unless it is clearly mentioned in your contract. But after repossessing your car the creditors should send you the following notifications:
- Notification that will give you a list mentioning what personal items you’ve left in the car and when you can take them
- Notice of intent to sell: this notification they should send at least 15 days before your car is sold. This notice should contain the following information:
- They will sell your car after 15 days from the date they notified you
- How much you should pay if you intend to buy it back
- Where to make the payment
- You have right to postpone the sale of your car for 10 days due to written request
- You are responsible for deficiency balance
- After the car is sold you have right to ask the creditors at what price they sold the car
Can I take my personal belongings from the car?
Surely you can! As I stated above you will get a list of your items within 48 hours, informing you how you can take them. But you may be asked to pay storage fees to the car repossession agent. However, you can take only the items which are not physically attached to the car. For example you can’t uninstall your stereo system. If you don’t take your belongings within 60 days of vehicle repossession, they can get rid of them.
What is wrongful vehicle repossession?
Car repossession is considered to be illegal while “breaching the peace”. This term defines the actions like:
- Break into garage with a duplicate key
- Use a threatening language
- Take the vehicle when a family member objects
Should I sell the car myself or let it be repossessed?
You’d better sell it! Repossessed cars are usually sold in lower prices and you can still owe money to the creditor, but you can sell it in a free market with a higher price and escape the deficiency balance.
What is deficiency balance?
The deficiency balance is the difference between the amount you owe the creditor and the amount the car was sold for. For example if you owe the company $10.000 but the car was sold for $7.000, the deficiency balance will be $3.000. This means you still owe the company $3.000.
What is the difference between voluntary and involuntary vehicle repossession?
Voluntary repossession is when you take the car back, yourself; involuntary repossession is when an agent comes to seize your car.
What will voluntary repossession give me?
Voluntary repossession is interpreted in different ways in different banks. But you are likely to get the following advantages:
- The creditor may not track car repossession fees
- You can reinstate the contract
Can the company refuse my voluntary repossession?
Yes, it can in case if the vehicle has depreciated significantly.
Do vehicle repossessions affect my credit rating?
Of course yes, repossession is a black mark on your credit report. Their existence can bring huge problems if you decide to loan another vehicle.
But never give up, there is nothing impossible, read on our blog and you’ll get more informed. Remember that knowledge is the best way to protect your rights.
Do you still have questions? Don’t forget to ask us!
