It is easy to get behind on car payments and other debt payments. Unfortunately, missing a car payment or two could result in a repossession. Lenders with liens on car loans typically do not wait as long to collect the debt. Some lenders begin repossession efforts once a person misses the second payment.
If you are behind on your car payments, do not risk your vehicle. Secure your vehicle in a safe location and contact our Buckeye repossession attorneys to discuss your options for preventing a vehicle repossession.
Can A Repossession Company Take My Car Without a Court Order?
Yes, provided that the repossession is “peaceful.” Arizona repossession laws allow lenders to repossess a vehicle and sell the vehicle without obtaining a court order. Therefore, if you are behind on your car payments, your vehicle could disappear at any moment.
The requirement that the repossession does not breach the peace is why many repo companies repossess vehicles at night, while you are at work, or while you are in the shopping center. If the repossession company can get the car without your knowledge, then the repossession did not breach the peace.
All you need to do to stop the repossession is to tell the repo person not to take the vehicle and to leave your home. Most repossession companies follow the rules and understand that they need to leave. A few repo companies might try to convince an owner that they have the right to take the vehicle even if the owner tells them to leave. Generally, it is easier just to wait until no one is around to take the car, which is what most repo companies do.
What Can I Do To Prevent My Vehicle From Being Repossessed?
Some people try to hide the vehicle to prevent a repossession. However, hiding a vehicle only works for so long. You need your vehicle to get back and forth to work and take care of your family. Furthermore, the lender will eventually go to court and obtain a court order to take the vehicle.
Your other option is to catch up on the payments or try to work with the lender. Depending on the lender, the vehicle, and how much you owe, the lender may be willing to work with you to refinance the loan so that you can afford the payments. Of course, lenders are not required to work with you, so do not be surprised if this option is not successful.
If you cannot afford to catch up with your car payments or pay the loan in full, your only other option may be to surrender the vehicle or to file for bankruptcy relief.
Filing a Chapter 13 bankruptcy case can help you keep your vehicle. Car loans are typically included in the Chapter 13 repayment plan. You may be able to reduce the amount you owe on the secured portion of the loan if you have owned your vehicle for a while, and the car is worth less than you owe on the loan.
Filing a Chapter 13 bankruptcy case just to save a vehicle from repossession may not be the best choice for your financial situation. A Buckeye bankruptcy lawyer can review your case and provide guidance and advice. If you owe other debts or you are behind on your house payments, filing Chapter 13 to stop repossession might be a wise decision.
Contact Our Buckeye Repossession Attorneys for More Information
Dealing with a repossession can be difficult. Even though you lose your car, the lender may seek a deficiency judgment against you. A deficiency judgment is a monetary judgment for the amount of money you owe the lender after the car is sold. Filing a Chapter 7 bankruptcy case might be a wise choice to get rid of a car that is upside down on the loan and avoid a deficiency judgment.
Contact Allegiant Law Group by calling 602-562-1000 to schedule a free consultation with a Buckeye bankruptcy lawyer to discuss your options for handling a repossession.