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Have you fallen behind on a car, truck, van, motorcycle, or RV loan repayment in Colorado Springs?
If so, you’re likely wondering how you’ll be able to function without your vehicle if it’s repossessed. Like every other Colorado Springs resident, you use your car to get to work and take care of your family. If you can’t get to work, how will you ever get out from under the debt that caused you to start missing car payments to begin with?
Falling behind on bills happens to everyone. The problem is trying to explain your situation to the finance company. Unfortunately, most loan companies don’t really care about your personal problems. They are in business for one purpose: to make money. You signed a contract with them, and they want their money or they want your vehicle.
Did you know filing for bankruptcy can allow you to keep your vehicle or other financed property, restructure the payments, lower the interest rate, and, if your car or other financed asset was just repossessed, actually get the property back from the creditor and allow you to resume making the payments?
If you’re afraid to look out the window in the morning because your car, truck, or boat might have been repossessed, call our Colorado Springs bankruptcy attorneys right away. We can set up a consultation and give you advice on how to fix your debt issues through Chapter 7 or Chapter 13 bankruptcy.
For most Colorado residents, financing a big purchase like a car or truck is a huge commitment. It can also be a very exciting time. So when the financer drops that huge stack of paperwork in front of their face, they just start signing, giving little thought to what the contract says. With their mind already on the open road, they definitely aren’t thinking about what that contract they just signed says will happen if they can no longer afford to make the payments on that big purchase.
Our team of Colorado Springs bankruptcy lawyers has provided answers for some of the most common questions asked about repossession to help you understand more about repossessions and bankruptcy in El Paso county.
What assets can be repossessed in Colorado Springs?
Repossession happens if a consumer is in a loan agreement with a creditor and they miss out on paying their scheduled payments, the creditor then takes back whatever property the consumer was financing.
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
Is there a difference between repossession and foreclosure?
Think of repossession and foreclosure as the branches of a tree. For this analogy, that tree is a lien, and foreclosure and repossession are the “limbs” or parts of a lien. A lien is a legal claim against a piece of property that is recorded with the local county, giving the lienholder a legal interest in a property.
Simply put, home repossession and foreclosure are both legal processes that refer to a creditor taking away your house. These processes are similar, but they have significant differences.
Foreclosure refers to the process that your lender must follow if you go into default on your home loan and stop making payments. The foreclosure process is more complicated than repossession.
When you stop making payments on certain secured loans, the creditor can repossess the collateral. While there is a process that creditors must go through to legally repossess their property, it isn’t nearly as complicated or time-consuming as foreclosure is.
How many payments can I miss in Colorado before my asset is in danger of repossession?
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.
Is it legal in El Paso county for a repossessor to come onto private property?
Yes, it is legal for a Colorado repossession agent to repossess their asset from a public place or private property, as long as they don’t breach the peace to repossess said asset. Breaching the peace during a repossession can include using physical force or threats of force and breaking into locked buildings.
Can filing for bankruptcy help with repossession in Colorado Springs?
The two most common types of personal bankruptcy filed in Colorado are Chapter 7 and Chapter 13. 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 in Colorado Springs.
Chapter 13 is commonly referred to as reorganization bankruptcy, as it compiles and restructures all of your debts into more manageable payments, spread out over the course of 3 to 5 years.
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. That’s why it’s imperative to contact an experienced Larimer County area Chapter 13 bankruptcy attorney as soon as you have had property repossessed. The sooner you get your bankruptcy petition filed, the better chance you have at recovering your assets.
What are Colorado asset exemptions?
If you file for Chapter 7 bankruptcy in Colorado Springs, exempt assets can’t 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:
For more information on Colorado’s repossession laws, reach out to our experienced Colorado Springs bankruptcy attorneys for a free case consultation.
If you are struggling to make monthly payments on property like a car, truck, major appliance, furniture, or other large purchase, you may be worried that the lender will repossess the property. Repossession can be stressful, humiliating, and inconvenient. For those with property in danger of repossession, an experienced Colorado Bankruptcy Attorney may be able to help.
During your free case consultation, one of our knowledgeable El Paso County bankruptcy attorneys can advise you about whether filing for bankruptcy is a good option for you, and how the automatic stay provisions can help you keep your house or car. Contact us today, our team of legal professionals has years of experience protecting Colorado Springs residents just like you from repossession.