One of the most stressful aspects of dealing with debt you
can’t repay are the debt collectors trying to get money from you. Sometimes,
these efforts can also involve attempts to collect on debts by taking your
property. Repossession is when a third party can legally take your property to
repay a debt.
How Does Repossession Work?
Repossession can happen when you are behind on your payments
for your car, furniture or other items bought on credit. Here are a few aspects
of repossession it can be helpful to understand:
· Repossession can start as soon as you default on your contract, missing even a single payment in some cases.
· In most cases, your creditor will not need a court order to start repossessing property.
· Once the property is seized, it is difficult, but not impossible, for the borrower to reverse the situation.
Bankruptcy may be an option. A Chapter 7 Bankruptcy will
temporarily stop your lender from being able to repossess your vehicle and may
provide you with sufficient time to make a payment to bring your account
current. A Chapter 13 Bankruptcy may also be an option. Chapter 13 would allow
you to keep your vehicle and catch up on the back payments by repaying the
amount you’re behind over a 3 to 5 year period.
The threat of losing your property is frightening. But you
have options! By filing for bankruptcy, you may be able to make the repossessionstop by putting bankruptcy’s “automatic stay” to work in your case.
Call King & King at 404-524-6400 to schedule a
consultation to discuss your repossession situation with an attorney – the evaluation
of your case is free.
