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Every day, people living and working in Denver find themselves in a situation where they must deal with the repossession of their property due to a defaulted loan or missed payment. Dealing with financial issues and debt can be overwhelming, especially if you risk losing an important asset due to falling behind on loan payments.
This may be especially true if the item that was repossessed is your automobile. Denver residents like you rely on their cars and trucks to get to work, get groceries, and take kids to school or to the doctor. If you suddenly are without reliable transportation, will you be able to keep your job and maintain your family role?
While repossession and the threat or repossession may seem embarrassing, the truth is that people all over Colorado and the United States suffer financial setbacks every day. Usually, it is no fault of their own. Sickness, losing a job, and even pandemics may cause a person to fall behind on bills, and once you’re behind, interest quickly adds to your burden.
Rather than be embarrassed, it’s best to seek the best and most efficient way to improve your financial situation and prevent costly repossessions that can further derail your life. Now is the time to take swift action.
With the help of a skilled Denver bankruptcy lawyer it may be possible to stop repossession and get the debt relief you need.
Our experienced legal team works with clients all over the state of Colorado, including:
With decades of combined experience handling Chapter 7 and Chapter 13 bankruptcy cases throughout Denver and the State of Colorado, our team of legal professionals continually provides people just like you with the tools needed to overcome serious debt problems and prevent repossessions.
Repossessions are often a daunting topic for people who are seeking debt relief, especially for those wondering how a repossession can impact their financial futures. Our team of Denver bankruptcy attorneys has provided answers for some of the most common questions asked about repossession to help you understand more about repossessions and bankruptcy.
What assets can be repossessed in Colorado?
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 left and right arms of a body. For this analogy, that body’s 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.
In short, housing repossession and foreclosure are both legal processes that refer to a creditor taking away your home. 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 in order to legally repossess their property, it isn’t nearly as complicated or time-consuming as foreclosure is.
How many payments can I miss 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 Denver for a repossessor to come onto private property?
Yes, it is legal for a state 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. If you feel that a breach of peace occurred during the repossession of your property, it’s imperative that you reach out to an experienced Denver County area bankruptcy attorney.
Can filing for bankruptcy help prevent repossession?
The two most common types of personal bankruptcy filed are Chapter 7 and Chapter 13. As soon as you file for bankruptcy in Denver, 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. Contacting an experienced Denver chapter 7 bankruptcy attorney for help as soon as you’re in fear of your car being repossessed helps you have the best chance of keeping your assets.
If the lien holder for your automobile is constantly pestering you to pay back your loans, you may be fearful about losing your car to repossession. After all, you have already been doing everything in your power to pay back your debts, so where is this extra money going to come from? Thankfully, there is a sure way to get caught up on truck and car payments by using Chapter 13 bankruptcy.
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.
All of which is why it’s imperative to contact an experienced CO 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, 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, visit Upsolve.org or Debt.org’s article on keeping your car after you file for bankruptcy. Additionally, you can reach out to our experienced Denver County bankruptcy attorneys for a no-cost case consultation.
When you are facing veritable mountains of debt, the anxiety and fear that follows can be overwhelming. However, this stress can be doubled or tripled when you are being hounded by repossession companies trying to take away your possessions. The possibility of relinquishing your hard-earned car, truck, or other asset is likely to make you feel devastated- as if your world is crashing down around you.
If you feel like the threat of repossession is weighing down on you, our team of experienced Denver bankruptcy attorneys is ready to lend a hand.