Whenever you decide to finance or lease a car, your lender will retain the rights to it until the last payment has been made on your contract. If you fall behind, the creditor may choose to take the car back at any time, as long as they don’t break any laws or disturb the peace to do so. Experiencing vehicle repossession will have a significant impact on your future ability to obtain credit. Fortunately, though, the law offices of Robert A. Schwartz in Rochester, NY, say you still have legal rights in this situation. Here, they explain how the process works and how their team will help you.

Lawyer Explains How Vehicle Repossession Works

What Does the Law State?

In New York, lenders aren’t required to get a court order or notify you before repossessing your car. They are obligated to inform you and the DMV of the repossession within 24 hours after it has taken place. This can be done in person or through a notice sent as first class mail. The notification must contain the name and address of the company who picked up your vehicle and the creditor’s plans for disposal.

What Happens When a Vehicle Is Repossessed?

When vehicle repossession occurs, your car may be dismantled and sold for parts, auctioned off, or resold. If the lender is not able to make enough money to cover the outstanding balance on your loan, the rest of your debt becomes a deficiency. They can then choose to get a judgment against you for the remaining amount, which may be satisfied through wage garnishment or by taking the funds directly from your bank account.

How Will a Lawyer Help?

If your vehicle is repossessed, it’s best to consult with an attorney to determine whether your rights were violated during the process. If they were, you may be able to sue the lender and reclaim the car or avoid a deficiency judgment. Another option legal counsel will advise you on is filing bankruptcy. This may give you the opportunity to discharge your delinquency balance, spread the payments out over a length of time, or reverse the repossession.

Whether you are facing vehicle repossession or have already had your car taken, it’s crucial to know your rights and legal options. Robert A. Schwartz has been representing the residents of Rochester, NY, for more than three decades. He has helped numerous clients overcome their financial burdens to enjoy a debt-free life, and he will help you do the same. Contact him at (585) 351-2929, or visit him online for more information.