Car ownership plays a significant role in our daily lives, providing the convenience and mobility essential for work and leisure. However, financial hardships can sometimes lead to missed loan payments, putting your vehicle at risk of repossession.
Car repossession occurs if you have used a loan to buy your car and are unable to repay it within a certain period. Missing your loan installment payment dates can also lead to repossession.
Bloomberg reports that there were 1.2 million repossessions in the US in 2022 alone. The numbers went up by around 5.3 percent from 2021.
Moreover, ABC11 reports that car repossessions in the US are on the rise. Factors like inflation, high gas prices, and job cuts are influencing this rise. Anyone at any time can have their car repossessed if their loan payments aren’t properly made, including you.
The question is, what do you do in such circumstances?
If you find yourself facing the daunting possibility of losing your car, consulting with a lawyer is the best step you can take to protect your rights and interests. In this article, we will explore a few compelling reasons why seeking legal counsel is a wise decision when your car is about to be repossessed.
Understanding Your Legal Rights
When you default on your car loan, creditors may attempt to repossess your vehicle without prior notice. However, laws and regulations surrounding repossession can vary significantly from one state to another.
A knowledgeable attorney specializing in consumer law will ensure you fully understand your rights and the repossession laws that apply to your jurisdiction. This expert guidance will empower you to make informed decisions and may potentially halt the repossession process if any violations of your rights are identified.
They can also help you understand how the laws vary from place to place. For instance, according to Conn Law, PC, repossession agents in California are not allowed to enter your property and seize the car without your consent. If they do, it’ll be treated as unlawful possession.
However, in Illinois, agents can repossess a vehicle by breaking into it if necessary. You’re not supposed to know all this, which is why you need a lawyer to make you aware of your rights.
Negotiating with Creditors
Once your car loan is in default, the lender might employ aggressive tactics to repossess the vehicle quickly. They may resort to intimidating phone calls or even attempt to repossess the car from your property without proper authorization. At this juncture, an attorney can act as an intermediary between you and the creditor, protecting you from harassment and ensuring that your rights are respected.
Experienced lawyers can negotiate with creditors. They can help find alternative solutions that might allow you to keep your car or work out a suitable repayment plan to catch up on missed payments. They can also explore options like loan modifications or refinancing to make the terms more manageable for you.
Exploring Legal Defenses
Car repossession is a serious matter, and creditors must follow specific rules and procedures when attempting to take back the vehicle. However, sometimes lenders make mistakes or act unlawfully during the process. An attorney can carefully analyze the circumstances leading to the repossession and identify any potential legal defenses that might apply in your case.
Common defenses include improper notice, breach of the peace during the repossession, and failure to adhere to state-specific repossession regulations. If a court finds in your favor, the repossession might be deemed invalid, and you could regain possession of your car.
Saving Time and Money
A lawyer’s expertise and experience can expedite the process of resolving your car loan default situation. This, in turn, will prevent costly mistakes and ensure that all available options are explored.
Moreover, an attorney’s intervention can help you avoid further legal troubles down the line. If you lose your car due to unlawful repossession or improper procedures, you may face difficulties securing new credit in the future and suffer additional financial setbacks.
Conclusion
According to Fox Business, car debts are piling up in the US, and more and more Americans are struggling to make their loan payments. This, in turn, is leading to more repossessions.
If you think you, too, might become a victim of this, it is a good idea to get in touch with a lawyer as soon as you can. Unless you do so, you might end up losing your car for good without even being able to put up a fight for it.
With a lawyer by your side, not only can you protect your rights, but you might also be able to stop the lenders from taking away your car.
