Are you at risk of vehicle repossession?

Are you at risk of vehicle repossession?

| Mar 10, 2020 | Firm News |

When someone in Michigan is struggling to make payments on a vehicle loan, it can be devastating to discover that the lender has repossessed the vehicle. In fact, the mere threat from a lender may lead a car owner to take drastic measures to avoid the humiliation and inconvenience of vehicle repossession. However, it is important to know how the law protects the lender and the consumer’s rights when facing repossession.

The right for a lender to repossess a vehicle is likely spelled out in the loan documents, and the car owner may have even received notices that the repossession process was underway. When this happens, it may be tempting to hide the vehicle in a garage or a neighbor’s backyard, but this can lead to more serious trouble. If the lender has to pay a repossession company more money to track down a vehicle, that expense can be added to the borrower’s loan, creating even deeper financial trouble.

As long as they do not break the law or damage property, repossession agents can come onto private property to claim a vehicle whose owner is delinquent on payments. A vehicle owner may call the police if the agent violates those rules. However, it is not wise to confront the agent or try to fight the repossession.

In fact, whether a vehicle has already been repossessed or the lender is threatening to take this step, reaching out to a bankruptcy attorney as quickly as possible can be a smart move. By starting the process of bankruptcy debt relief, someone who is struggling financially can bring a stop to the vehicle repossession process or the auction of a repossessed vehicle. A Michigan attorney can provide more information on the process and assistance in taking the step toward a fresh financial start.