Car Repossession Laws
Car repossession laws are good to know in case your car is to be repossessed by the creditor you owe. Most people who have gone through this experience have said it is quite traumatic. Besides losing a car you future chance of getting a credit is utterly diminished. Car repossession laws may stipulate that once the creditor got hold of the car, he is allowed to sell it at a public auction in order to get the money. And this means that the debtor will have almost no chance at getting his car back. If the money obtained for the car does not clear the loan, the creditor is entitled to file suit in order to recuperate the deficiency.
In some states car repossession laws work in the benefit of he consumer at least from the point of view of the deficiency. If the creditor does not send the debtor a notice precisely as the law requires, then the creditor can not get the deficiency. That is why it is very smart of the consumers to know what the car repossession laws mandate in their states or at least to resort to some legal advice. For example, in California, the creditor is forced to state in that notice what amount it would take the consumer to pay in order to get his car back and reinstate the contract. Moreover, it should allow more time for the debtor to collect the money and thus include an extension form; it should also provide such information as the address and the name of the person to whom the money should get to in order to redeem and reinstate the contract.
As it is obvious from this example, it is important to check with the law in order to know what rights you have. Taking into account that states have different car repossession laws, one should not completely rely on the resemblance between the California law mentioned above and the law in his own state. The internet is a good source for checking car repossession laws, but then many sites declare that they are not responsible for the more or less accurate or updated information they offer in terms of vehicle repossession rules. If however a bit of doubt appears about the treatment you get, then you really ought to consult a legal adviser about the car repossession laws and procedures. One other valid suggestion would to check the site of the state’s Judicial Branch which would not cost a thing, unlike the legal advice you might get from an advisor.