Understanding and stopping the repossession process

| Nov 6, 2017 | Blog, Firm News |

If you find yourself overwhelmed by debt, chances are that you are also dealing with phone calls from creditors and dealing with threats of certain collection actions, including repossession. You may be wondering if an Ohio creditor can actually take your vehicle, and the answer is yes, that is possible. This may seem like a violation, but you would be wise to know your options and your rights as a consumer, as well as how to make the repossession process stop.

Repossession is the process of reclaiming property when the person who financed that property defaults on the loan. While repossession most often involves vehicles, this can also happen to other types of financed property. If you are receiving threats of this type of action, bankruptcy could offer you a way to make this process stop, at least temporarily.

How can they just take my personal property?

It is normal to feel frustrated at the fact that a person acting on behalf of a company could just come and take your car. In reality, the creditor likely outlined their right to do this in the fine print of your contract. The following are a few other things that you may not know about the repossession process:

  • The creditor likely has the right to initiate the repossession process as soon as you default on the loan.
  • While the creditor has the right to repossess the vehicle, the agent acting on behalf of the creditor cannot break any laws to do so.
  • Once repossessed, the creditor has the right to keep the vehicle as compensation or to sell it to pay off what remains on the loan.

The repossession process feels like a violation of your rights, and if you do not have your vehicle, you will not be able to get to work, school or participate in other activities. When you file for bankruptcy, the repossession process will stop, and you may be able to protect your personal property.

The benefits of the automatic stay

Filing for bankruptcy may be the right option for you if your financial situation looks grim and you cannot manage your debt. Upon filing, the automatic stay will go into effect, which will halt all efforts to collect on outstanding debt, including repossession, wage garnishment and even phone calls from creditors.

The automatic stay is just one way that bankruptcy can offer you a reprieve in what seems like a hopeless situation. If you feel like you are out of options, you would be wise to fully explore the option of bankruptcy and learn about the benefits of this process.