Repossession Of A Car
The repossession of a car takes place when the individual who borrowed money doesn’t have enough to pay back to the creditor and the creditor takes your car in exchange for the money you are supposed to return to him. This can happen only if the car has been bought based on a loan or a hire purchase which means that from a legal point of view the car does not belong to the owner until complete payment is achieved to the lender.
In case you can no longer proceed with the payment and the repossession of a car is the alternative, then you should become familiar with what your rights and obligations are in case you have not done it already. You should know it is illegal to hide the vehicle and avoid the repossession of a car you bought using a loan and, if that is however done, you will have to pay a fine and, in some cases, deal with criminal charges. However, avoiding the repossession of a car can be done by hiding it in case of a court order. Otherwise you might be forced by the contract you signed with the loaner or by law to allow the repossession as it is.
If the repossession of a car you have not fully paid yet has already taken place, then you can still get your car back. It is true that getting it back depends on the lender and the contract you signed with him. If you are told by the loaning company that getting the car back is impossible, then you ought to check with the rules and laws of the state you live in to make sure that you are not misinformed by the company or the creditor.
The repossession of a car is not actually required by law in all the states, but creditors usually resort to this measure and may even sell it at an auction to get their money back. That is why you will have to act fast after the repossession of a car and try to get it back if you can and want to before the day of the auction. All you need to know are the legal procedures through which you can impede the auctioning of your car.
All in all, the repossession of a car is quite a tricky business and you as credit consumer should do everything possible to avoid this measure if you can. In some cases, the creditor may even ask you to pay for the expenses of the repossession, so it can turn out to be a loss from several points of view.