Why You Should Talk to a Florida Repossession Attorney

Are you facing a possible vehicle repossession after missing one or more car loan payments? Here’s what you need to know about repossession, your rights during the process, and what options you have to navigate or even avoid the situation:

Car Loans and Repossession – Why Does This Happen?

A car is an expensive purchase that most of us can’t make in a single payment. The majority of people purchase their vehicles via bank loans, leaving them in debt to these banks or lenders. In simple terms, you don’t own your vehicle – the lender does until you pay off the loan. As such, failure to repay your loan or missing several payments can result in the repossession of your vehicle.

Do you rely on your vehicle for transportation to and from work, school, and other obligations? What about trips to the grocery store, to the bank or the post office, to pay bills, and complete other important errands? If so, you’re just like the many other Floridians who can’t afford to be without their cars.

At the Van Horn Law Group, we specialize in helping you understand your rights when it comes to vehicle repossession, as well as how to avoid it. Our compassionate staff understands that the fear of losing access to your vehicle can be an overwhelming one, especially if difficult circumstances have caused you to fall behind on payments. We’ll help you navigate the process and explore all of your options to get the best possible result.

Can’t Make Your Car Payments?

Repossession is a scary word, but understanding the process and your rights throughout it can help you avoid the scenario or make the best of what might otherwise be a confusing situation.

If you have fallen behind on one or more car loan payments, your bank or lender may take one of several actions. Some of these include:

• Requiring immediate repayment of the loan in full, including the remaining balance and all additional fees, so that you may retain possession of the car.
• Immediate repossession, with or without prior notice. (It is important to note that no notice is required by law.)
• Selling your vehicle in a repossession car auction. This may also lead to you being sued for the difference in value between what the car sold for at auction and what it is actually worth.

None of these scenarios are pleasant, but your lender is within their rights to choose any of them. Which of these options they choose to go with will depend on several factors, including their original terms – which you should have a copy of to refer to – and the number of payments you have missed. The sooner you take action, including speaking to a repossession attorney, the sooner you can stop this process if possible or find other options that might work for you.

Bankruptcy as an Option

In some circumstances, bankruptcy may be the best choice for those facing repossession of their vehicle. This depends on other factors as well, including overall debt, income and meeting a means test requirement, and more. To learn more about whether bankruptcy is the right option for you when facing the repossession of your vehicle, talk to one of our experienced attorneys.

If you do opt to file for bankruptcy doing so will immediately put all of your assets into what is known as an automatic stay. This will effectively stop all debt collection attempts. Depending on the type of bankruptcy you file, you may be able to retain possession of your vehicle as part of your bankruptcy agreement. In some cases, you may have to surrender the vehicle as part of your bankruptcy estate. Again, this is determined by the type of bankruptcy you file and the agreements reached by the court and your creditors. Your repossession attorney can explain all of this to you in detail, as well as help you determine which type of bankruptcy is best for your individual situation.

Other Options After Repossession

If you have already had a vehicle repossessed, you are not out of options! There are several ways to reclaim your vehicle. Some of these include:

• Buy your own car back at auction. This may seem unconventional, but there are no laws against purchasing your vehicle at a bank auction at the typically reduced price at which it is offered. You may also be able to have a friend or loved one make the purchase for you. Remember, your bank or lender is required to issue notice of your vehicle being sold at one of these auctions, so don’t hesitate to show up!
• Reinstatement. Your bank or lender may be willing to reinstate your loan. This isn’t always an option, but in some cases, those who have missed only a payment or two – or who otherwise have good credit records – may be eligible for reinstatement. If you have fallen behind on your payments due to COVID-19 or other unforeseen circumstances, don’t be afraid to talk to your lender about potentially working something out.
• Redemption. If you have the means – or are able to secure them – then paying off the remainder of your balance on your auto loan will return your vehicle to your possession and wipe the worry of repossession and living without your lifeline from your mind. This isn’t always an option, of course, so the sooner you speak to your lender about this possibility, the better.

Contact a Repossession Attorney Today to Learn More About Repossession and Your Rights

There are many options when it comes to vehicle repossession. Which one you choose will depend on where you currently are in the repossession process, who has possession of your vehicle currently, how much you owe on the car, your financial means, and much more. The best way to guarantee you make the right decisions when navigating this process is to trust the experienced team at the Van Horn Law Group to guide you through, step by step.

Call us today to speak to a repossession attorney and get back on the road to financial stability.