Repossession and Bankruptcy in Florida
Let the LAW work for you! If you ever worry about losing your car, major appliances or other valuable property to creditors – You’re not alone. The repossession process can be humiliating and add stress to an already difficult time in your life. Fortunately, if you are facing mounting debt, you may have legal options to protect your property and receive a fresh financial start. To learn more about what options make the most sense in your specific case, contact the legal team at Dolaghan Law today to see how we can help.
Repossession: What It Is and How It Works
Repossession is a possibility whenever you buy an item based on a secured financing agreement, which is most common with larger purchases such as a car, furniture or an appliance. In these situations, if monthly payments are missed, the lender may have the right to repossess. File BEFORE the property has been repossessed – otherwise, you might not get it back once it’s taken. Bankruptcy can PROTECT your property and STOP the harassment.
Seeking bankruptcy protection may be a critical tool to protect your property before foreclosure or repossession. No two cases are identical, but both chapter 7 and chapter 13 bankruptcy come with an “automatic stay” which can prevent creditors’ attempts to repossess your property. As a result, when bankruptcy protection is sought before the property is lost, an automatic stay offers a critical benefit for people with financial struggles. The automatic stay is an injunction, as it stops foreclosures and repossession in its tracks. The automatic stay also prevents creditors from engaging in collection activities, like intrusive calls and letters or garnishing bank accounts and wages.
The Most Common Pieces of Property that can be Repossessed are:
● Vehicle: When you purchase a car with financing from the dealer or a bank, they may retain the right to repossess in the event of non-payment. The term “vehicle” also includes trucks, boats, RV’s and other recreational vehicles.
● Appliances and furniture: Large purchases are often made with store financing, which may come with a right of repossession for non-payment. It is important to distinguish this from items bought with a credit card. Credit card debt is not secured.