New Jersey Legal Help to Stop or Deal with Repossession

If you 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.

Who, 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.

What Types of Property Can Be Repossessed?

Cars 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 secured debt:

  • real estate
  • jewelry
  • rent-to-own furniture, appliances, or electronics
  • artwork
  • any type of tangible asset that can be sold

Can Your Home Be Repossessed?

In the 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.

What Triggers Repossession?

A 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.

If a 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 counsel.

You’ll 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 Taken?

While 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.

What Happens If You Don’t Pay Your Credit Card Bill?

Most 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. 

Why See a Lawyer?

A repossession 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.