There are many unpleasant consequences that come with owing a significant amount of debt. One of these includes the efforts of debt collectors and creditors to secure payment from the consumer. This typically starts with phone calls and letters in the mail, but it can escalate to more serious efforts, such as repossession. If you are behind on your payments, you may have received notice of repossession.
Creditors do have the right to repossess assets bought on credit, but there are strict guidelines on what they can do and how they can do it. If you are facing the possibility of repossession, you probably want to know what this means for you, what to expect and what you can do to stop it. No matter how much debt you owe or how far behind you are, you still have rights.
What happens during repossession?
There is no set amount of time a creditor has to wait before starting the repossession process. They can initiate the process as soon as the account goes into delinquency. It does not require a court order to start the repossession process. Typically, a creditor will contract the services of a third party to repossess the vehicle. After taking the property, the third party will sell it to pay for the debt.
While creditors do have the right to repossess property, there limits to where and how they can do this. For example, a third party cannot breach the peace in order to capture the property. This typically means that someone cannot come into your private property, such as a closed garage or your home, in order to collect the property. Cars are not the only type of property often repossessed. A creditor may also try to collect jewelry, real estate, rent-to-own furnishings, artwork or other tangible assets.
Can you stop it?
If you are facing the possibility that someone may come and take back your assets, you are likely in an unpredictable and overwhelming financial situation. While you may feel powerless to make it stop, there are steps you can take to regain control of your finances. This includes filing for consumer bankruptcy.
Bankruptcy is a process that allows you to deal with your debt in an organized and effective manner. It also halts any creditor action against you, including repossession efforts. If you think you could benefit from this type of protection, you may want to speak with an experienced Tennessee attorney about the options available to you.