No one gets an auto or mortgage loan with the intention of not paying it off. However, many people have gone through the unfortunate experience of falling behind on their payments as they struggle with mounting debt. When this happens, a creditor may have grounds to repossess the property they have a right of ownership over. If you are facing the threat of repossession after defaulting on a loan, it’s important that you know your rights so you can protect yourself against illegal actions. It’s also vital that you understand there are ways to stop a creditor from taking back your vehicle or home.

Illegal Repossession Practices 

In both vehicle and home repossessions, lenders are required to send a notice of default and inform you of your right to cure the debt. This means they must communicate that your loan is in default and give you a certain length of time to pay back what you owe before attempting to repossess the property.

When it comes to car repossession, agents are not allowed to break into private property, enter a fenced area, or open a closed garage. They are also prohibited from breaching the peace in any way during repossession. In a foreclosure situation, lenders are also obligated to file statements itemizing how much is owed under the mortgage, which includes principal, interest, late charges, and attorney fees.

Steps You Can Take to Remedy the Problem   

There are a few different options to consider that may help you prevent repossession if your loan account has become delinquent. You may request that the lender let you make up missed payments through a repayment plan, reinstate the loan by making one lump sum payment that takes care of the full amount you owed, or refinance the loan, file for a Chapter 13 bankruptcy, or bring a complaint stating your rights were violated through illegal repossession practices. In most cases, the last two options will offer the best solution. Filing for bankruptcy will stop the repossession and help you reorganize your debt so you can regain your financial footing.

If you believe you have been the victim of wrongful repossession or wish to file bankruptcy to save your car or home, it’s essential to consult with an experienced attorney. The legal team at Bueker Law Firm will determine if your rights have been violated and help you explore all your options for retaining your property. For years, they have successfully guided the residents of Stuttgart, AR, through the bankruptcy process, allowing clients to achieve debt relief and regain their financial freedom. Contact them at (870) 673-1313 to discuss your current finances or visit their website for more information.