Getting Your Car Back
Avoiding Default In The Future
If you’ve defaulted on your auto loan and your car has already been repossessed, then it’s important to know how to avoid this in the future, especially if you’re hoping to get your vehicle back. Payments can’t be late even by a day if you get your loan reinstated. So, knowing that talking to your lender before anything goes wrong is key.
Before you default, make sure that your lender knows there may be trouble before it happens. A lender may be more willing to offer you solutions, such as deferment, if you warn them of issues ahead of time. If you find that you’re always cutting it close, it may be time to look into another solution like refinancing.
A vehicle can also be repossessed if your insurance coverage lapses. Lenders require full coverage car insurance during the course of your loan. Confirm that your auto insurance meets your lenders requirements, or you could risk a repo or force-placed insurance.
What Information Does Auto
The Auto-fill my return service will deliver all of the information listed below that is available at the time of the request. The CRA receives tax information from third parties and as such, the CRA should have most tax information slips and other tax-related information for the 2020 tax year by mid-March 2021. However, if the information is not available, it is possible that the CRA has not yet received it. If that is the case, please try the service again later.
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Consumer Protection Laws Associated With Automobile Repossession
How Do You Get Your Car Back After Repossession
You dont park your car in front of your house anymore.
Its been a few months since you were able to make a payment and youre worried about repo men showing up in the middle of the night.
What you didnt anticipate is the repossession firm showing up where you work. Suddenly, you have no car, no way to get back home, no way to get anywhere.
This can be a devastating situation, but its not a hopeless one. Even though your car has been repossessed, it doesnt mean you cant get it back.
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What If I Cant Pay And They Sell My Car
If you are unable to pay the necessary costs to get your car back and the repossession company decides to sell it, they must do so in a commercially reasonable manner. In most cases, a repossessed vehicle will be sold at an auction. You have the right to bid at the auction in an attempt to get your car back, but this will require you to have cash. After the sale of the vehicle, the finance company can sue you for any deficiency, which is usually a large sum of money and can lead to a lawsuit and garnishment of your wages. It is highly advised that you consult with a car repossession attorney in Chicago, IL.
What A Car Repossession Attorney In Chicago Il Can Do For You
In accordance with the law, your repossessed vehicle will have to be returned to you once you file for Chapter 13 bankruptcy, and an experienced Chicago car repossession attorney can guide you through this process. In addition to preserving your assets, a Chapter 13 bankruptcy will allow you to pay back the balance owed over the course of five years. This article provides a review of the basic rules regarding automobile repossession and the process of Chapter 13 bankruptcy.
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When The Lender Hasn’t Repossessed Your Car Yet
If you’re behind in your payments and file for bankruptcy, the automatic stay will put a stop to a lender’s attempt to repossess your car. However, the lender can file a motion to lift the stay, which essentially asks the bankruptcy court to allow the lender to proceed with the repossession. Most courts will let the lender go forward with the repossession unless you plan to invoke one of the below remedies.
You’ll likely have already told the court whether you intended to invoke one of the options when you fill out the Statement of Intention in Chapter 7 form.
Redeem the property. Chapter 7 bankruptcy allows you to buy the car back from the lender in one lump sum. An added bonus, you redeem the car in an amount equal to the “replacement value” of the car. So, rather than paying off the outstanding loan balance , you can get the car back by paying what a retail merchant would charge for the car given it’s age and condition. You can get a good idea of what this would be by using the Kelly Blue Book .
Keep in mind, however, that if you have significant nonexempt equity in your car , then the bankruptcy trustee is entitled to sell your car and distribute the proceeds to your creditors. To learn more about this, see Bankruptcy Exemptions — What Do I Keep When I File for Bankruptcy?
What Happens After The Repossession
After the bank takes your car back, it will hold onto the car for a short while. If you have not been able to remove your personal belongings yet, the bank must allow you to do so immediately. Then the bank will sell the car in hopes of getting its money back. The bank may sell the car any way it wants so long as the sale is commercially reasonable. That means the bank must sell the car for a reasonable amount of money and in a reasonable manner. Most sales of repossessed cars take place at an auction. As long as the auction is well attended and well advertised, auction sales are generally considered to be commercially reasonable. However, if the car is sold at a price which is dramatically lower than the retail value, that sale may not be commercially reasonable.
When the bank sells your car, it must do so in a commerically reasonable manner.
Before the bank can sell the car, it should tell you where and when the sale will take place. This is so that if you want to attend and bid on your car, or if you just want to see how the sale goes, you can do so.
After the car is sold, the bank should write to you and tell you how much you owe on the car , how much the bank spent to sell the car , and how much the car sold for . The bank has the right to add the costs to the debt. If the debt plus the costs is more than the car sold for, the difference is called a Deficiency.
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How To Time Your Bankruptcy To Get Your Car Back
You will be able to use Chapter 13 to get the car back if the lender has not yet sold it. A lender must abide by state laws governing repossession of vehicles. Most states require the lender to hold the car for 10 to 15 days before it can be sold. Once the car has been sold, you cannot get it back from the lender.
If you file a Chapter 13 case before the car is sold, the automatic stay will prevent the lender from selling the vehicle, and other sections of Chapter 13 will allow you to reinstate the loan and get car back from the lender.
What Are My Rights When My Property Is Being Repossessed
A repo man can come on to your property at any time, but cannot enter your house without permission. Property can be repossessed by the creditor or by a person hired by the creditor as long as the process does not involve a breach of the peace. If there is a breach of the peace caused by the repo man, the creditor could be liable. If you feel threatened by the person who has been hired to reclaim the property, call the police. It is against the law to prevent repossession of the property or threaten the person that has come to repossess it. If you try to prevent the repo man from taking the property, you are violating your security agreement and may expose yourself to criminal penalties.
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Find Out If You Owe Money
Even if your car is repossessed and later sold at auction, you might not be off the hook.
If you car sold at auction for less than you owed on the loan, you must still pay the remaining balance to your lender. For example, if the creditor sold your car for $8,000 but your loan balance is at $10,000, you need to pay the remaining $2,000 to the lender.
The creditor will notify you of how much you owe and you will be responsible for making payments to pay off the auto loan. If you do not make those payments, your creditor can sue you in court.
General Repossession Laws In Illinois
Finance companies can repossess your car if you default on the loaneven if you only missed one single payment. Even worse, they do not have to give notice or warning of an impending repossession. There are however, some rules by which a finance or repossession company must abide. For example, repossessions can only occur on public property, which means it would be illegal for them to enter your garage or private driveway in order to repossess your vehicle. Unfortunately, this law is often broken by repossession companies.
The finance company also has an obligation to inform you of the full amount of money necessary in order to get your car back, which will include the cost of the repossession itself and the storage charges. In most cases, these costs amount to at least $500 over the amount owed on the vehicle prior to the repossession. Prior to paying the fees requested by a repossession company, contact a car repossession attorney in Chicago, IL to ensure that the fees are reasonable.
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Can I Go To Jail For Hiding My Car From A Repossession Company
A seller cannot repossess your car if you keep it secured in your private garage. However, as soon as you venture into a public parking lot, repossession can occur. It makes little sense to keep a car hidden to avoid repossession in order to keep it, when the effect will be that you will still become unable to drive the car. While you may not go to jail for keeping your car hidden from repossession, it is possible that you will cause the seller to obtain a court order against you. If you are concerned that your car may be repossessed in Chicago, IL, speak with a car repossession attorney before you attempt to hide your car from repossession.
Consolidate And Reduce Other Bills
In addition to reducing your car payment, a bankruptcy attorney can consolidate and reduce other debts that you may have. The Chapter 13 is a full debt consolidation plan that allows you to create a customized repayment plan based on your budget. Through the program we can:
- Provide 0% interest repayment terms on unsecured debt
- Consolidate and potentially reduce unsecured debts based on your budget and income. All remaining unsecured debt balances are legally eliminated or discharged at the completion of the 36 -60 month repayment plan.
- Remove a second mortgage or home equity loan and/or reduce principal mortgage balance on a rental property.
- Provide you with legal protection not only for your vehicle, but for other creditor actions such as:
- Home foreclosure,
- All creditor calls and collection efforts, etc.
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Talking With Your Lender
If youre having trouble making car payments, contact your lender as soon as possible. Many lenders will work with customers they believe will be able to pay soon, even if the payments are slightly late. You might be able to negotiate a delay in your payment or a revised schedule of payments. If you can reach an agreement to change your original contract, get it in writing to avoid questions later.
If you cant reach an agreement, your lender may demand that you return the car. If you agree to a voluntary repossession, you might pay less in fees. But even if you return the car voluntarily, youre still responsible for paying any deficiency on your contract, and your creditor still may put the late payments or repossession on your credit report.
For more on how to deal with debt, go to ftc.gov/debt.
S To Get Back On Your Feet After A Car Repossession
Tuesday, Aug 11 2020
Having your car repossessed can leave you feeling helpless. But there are many ways to recover after car repossession and get you back on your feet. These situations can be a major inconvenience. You likely depend on your vehicle to get you to work, school, the grocery store, or other important appointments.
The first thing you should know is that youre not alone. Every day more than 5,000 cars are repossessed in the United States. According to the Federal Reserve Bank of New York, auto loan default rates are more than 30 percent. As economic times become more challenging car repossession can happen, even to those who had historically been able to keep up with their payments.
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Can I Get My Repossessed Vehicle Back
Getting your vehicle repossessed is extremely stressful. When finances are tight, it is hard to get a good night’s sleep. Once the bank has actually gone through with the repossession process, you might be wondering what you can do to get your car back, if anything. Well, the good news is that it is possible. The bad news is that it is not going to be easy, and you do not have much time.
If you want to regain possession of your vehicle, youre going to have to pony up the cash as soon as possible. The reason your vehicle was repossessed is that you were financially negligent, so to correct for that, youll have to do some quick catching up.
Ask For A Hardship Variation
If you’re willing to pay back the loan but don’t have the money, ask your credit provider for a hardship variation. They may offer you:
- extra time to pay
- a payment plan based on what you can afford
- other options to help you repay the money
You can also ask your credit provider to postpone legal action.
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Determine If You Can Get Your Car Back
The lender will typically allow you to get your car back before they take it to auction if you pay outstanding payments or pay back the loan in full. If you have a family member or friend that is willing to give you a personal loan for the balance due this is an easier path to getting your car back and back on the road.
If youre unable to pay back the loan in full many lenders will work with you to reinstate the loan and adjust the payment schedule or monthly payment amount. Your lender may be willing to set up a new payment plan allowing you to catch up on your missed payments and making a plan for future payments.
