Repossession of any personal item by a creditor can be devastating. Xue Connelly, attorney at Wade, Grimes, Friedman, Meinken & Leischner 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.
Whether you are facing a family law, protective order, estate planning, bankruptcy and/or criminal-law-related issue, Wade Grimes Friedman Meinken & Leischner PLLC is here for you during challenging times.