Understanding the process of vehicle repossession

| Aug 12, 2019 | Uncategorized |

If you have had trouble lately with paying certain financial obligations, for example, your car loans, you will likely face the consequences of missed payments. The contract that you signed when you purchased a car on finance will probably mean that your creditor will have the right to repossess your car if you have missed the payments.

You must take the appropriate action to address your financial issues if you are struggling to meet your obligations. In addition, communicate well with your creditors so that you are able to avoid unintended consequences such a vehicle repossession. The following is an overview of the course that vehicle repossession usually takes.

How the vehicle is seized

Most of the time, creditors have the right to seize a vehicle immediately after a lease has defaulted. It is paramount that you understand what type of action or non-action means that you have defaulted on your loan. You may be able to defend against vehicle repossession by arguing either that you did not default on your loan or that the contract being followed is no longer valid.

What happens after the vehicle is seized?

If your vehicle is successfully repossessed by creditors, they can use it in a way that they see fit. They may want to keep the car, or they may want to sell the car publicly or privately. If the car is being sold by your creditor publicly, you may have the right to be informed of the details of this sale before it takes place. This will allow you to buy back your vehicle.

What happens to the property inside the vehicle?

If you had some of your own property inside the vehicle at the time it was seized, you will always be entitled to that property. Your creditor will never be able to seize property found in the vehicle, and if they tried to do this, you may be able to gain compensation.

If you are struggling with issues relating to vehicle repossession in Missouri, you must take the time to understand the law. Chapter 7 bankruptcy can often be a great solution for those who are struggling to pay their financial obligations and who want to satisfy their debts.