Essential Information on Repossession
Repossession is a dreaded occurrence, and rightfully so. Encountering an individual who’s come to take away your property is tough and we can only sympathize. Knowing when and who can repossess your property will help you prevent potentially unlawful attempts. Oh, and when you stop them, be quick to hire a bankruptcy lawyer in Chula Vista, CA in order to protect yourself.
What is repossession?
If you default on a secured loan, your creditor has the right to repossess the collateral. The act of seizing your collateral goes by the name of “repossession”. Another key aspect of repossession is that they’re self-help, meaning that your lender is free to take possession of your collateral without a court order ahead of time.
Numerous states allow to enter your private property when completing the process of repossession while not breaching the peace. This means your creditors cannot use any type of physical force when repossessing your property.
A common example of breach of peace is pushing you out of the way in an attempt to take your vehicle or breaking into a locked garage. However, it’s often legal to duplicate the key to your car or hotwire it when repossessing.
When can creditors repossess my property?
In the state of California, the law allows for your lender to repossess your property immediately after defaulting on your loan, even in the case of payment being just a single day too late. There’s a chance of the terms present within your loan agreement granting you a grace period, so make sure to read everything thoroughly before allowing repossession.
You need to know that you have to respect all the aspects of your loan agreement in order to avoid repossession. For example, your car can become eligible for repossession not only if you default on your loan, but also if you fail to keep insuring your car and allow it to lapse.
Who is allowed to repossess my property?
California allows two types of people to repossess your property, mainly your car. First and foremost, your lender is allowed to hire the services of a repossession agency licensed by the BSIS, or the California Department of Consumer Affairs’ Bureau of Security and Investigative Services. If you ask them they’re under a legal obligation to show their BSIS ID. Also, it’s possible for you to then verify their license by contacting BSIS.
Also, an employee working for the legal owner of your property, most commonly for the dealership or the bank, has the right to take possession of your property. However, they don’t need any special licenses to do so.
Which bankruptcy lawyer from Chula Vista, CA can help me prevent repossession?
It’s important to be familiar with the most important information on repossession, such as knowing what assets a creditor is and isn’t allowed to repossess and being familiar with vital details regarding the process of car repossession. However, it’s best to try to avoid and prevent repossession altogether, and there’s no better way to do so than filing for bankruptcy. It’s at this time that you require assistance from reputable lawyers in your vicinity.
This is where Chang & Diamond come in. We’re a team of experienced, dedicated, and reputable legal professionals dedicated to one thing and one thing only, and that’s ensuring you have a bright financial future. We’ll handle everything, from assembling your documentation and filing it to dealing with your creditors in your stead. All you have to do is schedule your free initial appointment and be one step closer to enjoying the Living Coast Discovery Center once again.