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Making a large purchase that requires financing can be an exciting time. Whether it’s a car or truck, a boat, an RV, or something smaller like a state-of-the-art refrigerator or a new living room furniture set, you probably spent a lot of time going over whether you can afford it, what color it’s going to be, how to get it back to your house. By the time the financer drops that huge stack of paperwork in front of your face, you just start signing with little regard for what the contract says.
More than likely, you weren’t thinking about what that contract said about what will happen if you can no longer afford to make payments on that big purchase.
Repossession. It’s a scary word for anyone living in Aurora who’s financed a large purchase. Unfortunately, repossessions usually happen only when a person’s finances are already in bad shape. Missing a payment one month quickly becomes three months of missed payments. This happens because most people are doing everything in their power to get caught up on bills, but mounting interest prevents them from ever getting ahead. Once this downward spiral starts, it’s almost impossible to reverse it.
There are many reasons why people go into debt– a medical emergency, sudden unemployment, or a recent divorce are just a few of the most common reasons people find themselves burdened with debt. No matter the reason, debt can cause people to miss payments on their financed items like cars or appliances, putting those items under the threat of repossession.
If this sounds familiar, don’t panic, you have options. Repossession is stressful but not unavoidable. Bankruptcy may be a viable solution to your spiraling debt. If you have questions about repossession, or your car has already been repossessed, contact one of our CO bankruptcy lawyers immediately for a free consultation. We may be able to help you get back your property but time is of the essence.
One of the most difficult aspects of financial struggle is discovering that you are in danger of losing some of your assets via repossession. Many people who have experienced repossession due to debt are too embarrassed to admit it, so there isn’t a lot of information available to people looking for answers to repossession and bankruptcy questions.
Our team of Aurora bankruptcy lawyers believes that with knowledge comes power. To that end, we have provided answers for some of the most common questions asked about repossession to help you understand more about repossessions and bankruptcy.
A creditor cannot repossess something that hasn’t been named as collateral for your debt. Assets you have that can be repossessed are called secure debts. Secured debt is an obligation you owe that’s backed by collateral a creditor can recover if you default on the terms of your loan.
Usually, when people hear the word repossession, they automatically think of cars. However, many types of secured assets can be repossessed if payment for the loan has defaulted. These include
Unfortunately, going into default on a loan doesn’t always mean just missing payments on your loan. If you go back and look at the contract you’ve signed, the terms of your agreement will outline what will put you in default on a loan for a secured debt. For example, some auto sales companies include in their sales contracts that if the buyer either loses or doesn’t carry adequate car insurance, the buyer is in default of their contract and their car can be repossessed. If you need help reading over the terms of your loan contract, one of our Aurora bankruptcy attorneys can interpret the legal language for you during your initial case consultation.
Under Colorado law, you must be in default on your loan agreement for at least 10 days before your lender can send you a default notice. After your lender sends a notice of default, also commonly referred to as a Notice of a Right to Cure, you have an additional 20 days to bring your loan current before your lender can repossess your car.
In Colorado, it is legal for a repossession agent to collect their asset from a public place or private property, as long as they don’t breach the peace to repossess that asset. Breaching the peace during a repossession can include using physical force or threats of force and breaking into locked buildings. If your property has been repossessed and you feel like the repossession agent breached the peace, please don’t hesitate to contact an experienced Aurora bankruptcy attorney.
Unfortunately, without knowing the specific aspects of your case, we cannot promise that bankruptcy will help with your repossessed property. However, our helpful Aurora debt relief attorneys offer a free case consultation to each prospective client so that you can tell us the details of your case and we can provide you with the best debt relief options for your specific needs.
In general, bankruptcy can halt repossessions, but if and how you keep that property beyond bankruptcy is something you’ll need to discuss with a qualified CO bankruptcy attorney.
What we can say is that as soon as you file for bankruptcy in Colorado, an automatic stay is put into place, which prevents your creditors from attempting to collect any outstanding debt. Additionally, the stay prevents your lender from selling your repossessed asset without the court’s permission.
If your possessions have already been repossessed then filing for Chapter 7 bankruptcy might help you get your assets back if you file quickly. However, if the lender has sold your assets already, Chapter 7 bankruptcy probably won’t help you get it back.
The sure way to get caught up on truck and car payments and avoid repossession is by filing for Chapter 13 bankruptcy.
Additionally, if your property has recently been repossessed, filing for Chapter 13 bankruptcy may allow you to gain possession of your asset again. If bankruptcy is filed before the creditor has resold your repossessed property, you can get the asset back, however, if you wait too long after repossession to file Chapter 13, your chances of recovering your property grow slim.
If you file for Chapter 7 bankruptcy in Aurora, exempt assets cannot be sold for the benefit of settling your unsecured debt. Basically, bankruptcy exemptions level the playing field so that getting a fresh start doesn’t require you to start from scratch.
Some examples of Colorado state bankruptcy exemptions include:
We hope this webpage has answered any of the pressing questions you may have about bankruptcy and repossession in Colorado. For more detailed information, or to speak with a qualified Aurora bankruptcy attorney about the specifics of your case, please contact our firm today.
We’ve helped countless Colorado residents deal with repossession issues and our Aurora debt relief lawyers are ready to do the same for you.