fail to make payments on a secured loan – a loan for which you offered up some type
of property as collateral – your creditor has a right to take that property
away from you. This is what’s known as repossession. One way to avoid it may
be to file for bankruptcy. Not sure? Do what so many others in
Northern and Central New Jersey do and get help from Attorney Douglas Mitchell. He’s a seasoned bankruptcy and debtors’ rights advocate with a track record of helping
people keep their possessions.
you might ask, gave your creditor the right to take your collateral property
from you in the first place? You did – when you signed the contract for your
loan. That contract, among other things, establishes the creditor as having an
ownership interest in your property.
of Property Can Be Repossessed?
and other personal vehicles are the assets most often seized in repossessions.
But here are some additional types of property can be repossessed to satisfy a
- real estate
- rent-to-own furniture, appliances, or electronics
- any type of tangible asset that can be sold
Home Be Repossessed?
case of a mortgage loan, yes. The lender can repossess your home through a
process known as foreclosure. Foreclosure actions
allow the lender to sell the property to recover as much of the unpaid loan
balance as possible because the house secures the debt.
creditor can repossess almost immediately if you stop paying off your loan.
Again: The right to do so is set out in the loan agreement (contract) you
signed when you borrowed the money. When tangible property like a car is
repossessed, the creditor contracts with a third-party service to take the
property and sell it as a means of satisfying not only the unpaid balance of
the loan but also the costs of the sale and attorney fees.
creditor or lender seizes your property without notice or without a court order,
it may be because you contractually agreed to this. Nevertheless, you may have
a right by law to be notified, and it’s a good idea to seek Douglas Mitchell’s legal
also want to see Douglas if something you bought on credit or something you
leased is repossessed. Yes, even property you’re only leasing can be seized.
But you still have certain rights, and Douglas can apprise you of them.
How is Property
creditors have broad rights of repossession, they can’t break the law to
retrieve collateral on secured debts. That means they may not, in most cases,
come on your premises to take the collateral without permission from the legal
owner of the premises.
Happens If You Don’t Pay Your Credit Card Bill?
credit card debt is not secured debt. That means the creditors have no ownership
interest in your property and, therefore, no right to repossess it. If you don’t
pay your credit card bills after collection notices have been sent, the
creditors will have to go to court to secure a judgment against you.
will leave a black mark on your credit history, ruin your credit score, and
make it difficult for you to get loans in the future. If there’s any way for you
to avoid having your property repossessed, Attorney Douglas Mitchell will know
it. He’ll also know how best to help you cope with repossession and deal with
other legal matters arising from it. Contact Mitchell Law Offices, and see for yourself why so many others do here in
Northern and Central New Jersey.