Repossession of any personal item by a creditor can be devastating. Xue Connelly, attorney at Friedman, Grimes, Meinken & Leischner PLLC explains what repossession is, the most common types of repossession, how repossession happens, and how to effectively deal with repossessions.
What Is Repossession?
Repossession is when a creditor who has a security interest in the property you bought takes back the item(s) to cover the outstanding debt owed by the debtor.
What Are the Most Common Types of Repossession?
The most common repossessed items are cars, followed by any form of tangible property purchased with loan for that item, it can be computers, mattresses, and TVs.
How Do Repossessions Happen?
Creditors tend to repossess items after several payments are missed. Ms. Connelly explains why car repossession is among the most common types of repossession: “Your car is outside your home, in a parking lot, or on the street, making it easier for tow trucks to come in and take your car.”
Depending on how aggressive your creditor is, you may first get warnings or notices about unpaid loans on items. Repossession of property can also depend on past payment history. If you have missed two-to-three months of payment, a creditor is less likely to immediately repossess your property.
How Can I Stop or Deal with Repossession?
To stop the repossession of an item, the borrower must pay the balance owed. Once the balance due is paid off, the threat of repossession is canceled. If you are unable or do not pay the balance due, the next steps in repossession are either your item will be sold or auctioned off to pay the debt.
For more information on repossession, please contact Xue Connelly.
About the Author
Xue Connelly
Xue Connelly is an associate at Friedman, Grimes, Meinken & Leischner PLLC, specializing in bankruptcy, wills, trusts and estates. Ms. Connelly helps individuals and small businesses throughout Northern Virginia protect their assets. She has extensive experience handling all forms of bankruptcy, including Chapter 7 and Chapter 13 for individuals, and Chapter 7 for businesses. She also concentrates on estate planning and administration, advising clients on the latest and most efficient asset-protection strategies.