What type of property can be seized by creditors and how?

Ok, so what kind of property can you have repossessed? Well, let’s consider the word “Repossession” for a second. The word suggests repossession, meaning that the creditor repossessing the property to ‘repossess’ it must have owned it once in the first place. Sure, that makes sense, right?

Now if you buy a car on credit, you don’t really own it until you pay for it, the bank does. See that point. Now, while it is true that you are in possession of the car, it is not yours, but you have agreed to pay for it over time, and once it is fully paid for, it will be yours, when the bank he sends her the pink note and deletes her bond in the car.

If you don’t keep making the payments you promised, the bank will want to repossess the car from you. This is called recovery. They will then sell the car to someone else or put it up for auction.

What type of property can be seized?

Anything you buy on a payment plan will come with a contract, one you sign promising to make payments and pay interest. If you don’t pay the creditor or the bank, they have the right to repossess that item or seize it. After all, they are the owners, not you. People buy things all the time where they promise to make payments on time and sign a contract to do so. Think about things you may have bought or are currently paying for.

Maybe you financed some furniture, a smartphone, or a car? Maybe he bought an RV, a boat, a jet ski, or some other toy? All of these things can be seized.

If you installed an in-ground pool and bought it on credit, obviously it can’t be dug up and repossessed, but the creditor could put a lien on the property and, with a court order, force you to pay.

If you don’t pay off your house, the bank can’t repossess it, but they can foreclose on it and, with the help of the court, force you to leave. Foreclosures may look like repossessions as they amount to the same thing in your eyes, but they both have a different legal definition and different sets of rules.

Do I have protections under the law during recovery?

Yes, you have protections under the law during a recovery. A repo can’t touch you, except in self-defense. If they threaten you with jail or prison, it is an idle threat and it is actually against the law for them to make such threats.

A repo cannot force you out of your car or reach into your pocket to repossess ownership. A repo cannot enter your backyard through your gate, open it and cut the lock to retrieve your car, nor can they enter your garage to retrieve the car. They can take it from a public parking lot or take it if it is parked in your driveway or on the street.

A furniture company can’t break into your home without your permission and take back your furniture if you don’t pay, but they can report you to the credit bureaus and ruin your credit.

The repo company must first inform the police that they are going to repossess your car. That way the police will know it’s not being stolen if they call and report it missing. A repo company may request a police escort to protect them while they retrieve the property they seek, but may deny them entry as it is a civil matter. The police are only there to keep the peace between the parties. The police cannot intervene, unless the company has a sentence and a court order.

Can I get my car back if it is repossessed?

The law provides you with a remedy to repossess your car, if you pay the financing bank all the money owed, plus penalties, plus repurchase fees. You can also negotiate with them for a more favorable deal. It is recommended that you have an attorney act for you in this case.

There are consumer credit laws on your side, but remember that the bank owns the car until it is paid for and the furniture credit company owns that furniture until you make the last payment as you promised when you signed the contract to finance it.

Law firms are there to help

Law firms know that people can get entangled in complex financial difficulties, it is often a series of problems that causes such situations. They can help you figure it all out. Many offer a free 30-minute consultation. They can explain the law and your possible options.

If they can help you, they will tell you in advance, if not, they will also let you know. Being informed will help you make the best decision for the most favorable financial outcome.