A car is not just a means of getting to your destination, it can also determine whether you get to keep your job or not. So, when your car is repossessed your life could change drastically for the worse. Remember that a lender does not have to file a lawsuit to repossess your car.
The only thing you can do after your car is repossessed is to take steps to get it back as soon as possible. The longer you wait the harder it will be to get your car back.
Cars Are Often Repossessed At Night
To understand why they repossess cars at night you need to comprehend the idea of “breaching the peace”. Breaching the peace, in this situation, would mean seizing your car despite your protests. So, to avoid as much commotion as possible, they will come at night or while you are at work when you are less likely to cause a raucous.
The law concerning “breaching the peace” is not exactly clear, so there may be some loopholes that your lawyer may know about. As long as there is no one to tell them not to take the vehicle, they can take it without filing a lawsuit. Repossession companies are allowed to “peacefully” come into your compound and take your car, but they are not allowed to threaten you or damage your property during repossession.
What Are Your Rights During Repossession?
Creditors are allowed to file a lawsuit to repossess a car. But if you are behind in payments, creditors with valid liens can use “self-help” methods. These methods involve hiring a car repossession company to collect the car. A creditor has a valid lien on a car if you pledged the car as loan collateral.
When you sign documents that give a lender a secured lien on your car in exchange for a loan, it gives the lender the ability to repossess that vehicle when you fail to repay the loan. Contact an experienced lawyer if you suspect that your vehicle is about to be repossessed. Remember you have the right to “redeem” your contract by paying off the entire loan balance.
That means the creditor cannot hold onto your vehicle when you pay the full amount you owe.
What Happens When Your Car Is Repossessed?
Repossession companies are not licensed in Texas. So, the repo person that shows up to take your vehicle has no training on how to handle repo situations that get out of hand. That means if you argue with them, the argument could get heated quickly. When the repo man comes, the best action is to call your lawyer to advocate for you.
The law requires the lender to hold on to your vehicle for at least 10 days before they can legally put it up for sale at an auction. The proceeds that come from selling the vehicle are applied to the remaining amount you owe. That includes the late fees and the expenses related to repossessing your vehicle.