Boca Raton Bankruptcy Attorney

Car Repossession

Automobiles are typically purchased on loan or credit supplied by either the dealership or a third party creditor. If you fail to make your payments as the owner of a vehicle, the secured creditor is legally entitled to reclaim the property. This process is referred to as repossession.

Your Rights

The only limitation on automobile repossessions is that the individual reclaiming the vehicle, known as the repossessor, must do so without breaching the peace. This means they may not enter your home without authorization. The law in several states does not require that creditors sue you or even tell you about your default before they repossess the vehicle.

Getting Your Car Back

It is important to consult with an attorney should your vehicle be repossessed. The creditor can resell your car to someone else, but before this takes place you may have the right to buy your car back. This process is called redemption.

How to Redeem Your Property

When attempting redemption, be cautious of consumer credit contracts with acceleration clauses because they require you to pay the entire outstanding debt and not just the overdue amount. As the debtor you must:

• Pay the entire balance due
• Pay any repossession costs and other reasonable charges

If you or your business is facing financial crisis, consider filing for bankruptcy as a means to manage your debt and reestablish your finances. Contact Boca Raton bankruptcy attorney Eric N. Klein, P.A. at 561.353.2800 for a free initial consultation.