Many clients come to see us after someone has repossessed a vehicle. They either don’t read the letters, or they don’t believe the people who call and say they are going to repossess the car, but they do nothing in advance. Because the actions of the vast majority of secured creditors is so regular and dependable, we view this type of claim as inherently suspicious.
The law requires a car finance company, bank or any other lender, to take certain steps before they can repossess a car. It does not “just happen.” A surprising number of people will actually call the police when their car goes missing. This is a reasonable approach, but, don’t be surprised when the police respond by saying, “Yes, we were notified, your car was repossessed, there is nothing we can do.”
It is not against the law for a properly secured creditor to repossess its collateral, the car, if they follow the right steps. Most of the time, they do. However, it is against the law, contempt of court, when a secured creditor repossesses something after a debtor has filed for bankruptcy. In fact, we tell clients who file for protection to place a copy of the notice of commencement of their Bankruptcy Case in the front window of the car. It works better than RAID to keep repo men away!
Getting a notice of repossession, foreclosure, or tax lien, is not a casual matter. They are not kidding, seeking leverage or just threatening. They are not willing to rest on their “great relationship” with the debtor. They are following a specific set of laws that allow them to take something away from a debtor. Any of these things occur and a debtor should be heading straight to a Bankruptcy Lawyer.
This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.