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Making a large purchase can be an exciting time. Whether it’s buying a car, truck, boat, RV, or furniture set – you probably spent plenty of time thinking about whether you could afford it and what color/style you would like. Once the financer brings over that stack of paperwork, all your concerns fly out the window and you just start signing without reading through the contract thoroughly.
What would happen to that shiny new car or sofa when you could no longer afford to make the payments was probably the last thought on your mind.
Repossession. There’s no spin or silver lining. It’s a scary word for anyone who’s made a large purchase through financing a loan with a creditor.
There are many reasons why people end up in debt- from an unexpected medical emergency to unemployment, to a recent divorce. Regardless of the cause, having significant debt can put financed items like cars or appliances at risk of being taken away by creditors.
If you’re experiencing dread or panic about your financial situation, don’t worry – there are options available. Speak with one of our experienced Lakewood debt relief attorneys- bankruptcy could provide a solution to your debt problems.
One of the most difficult aspects of financial struggle is recognizing that you are in over your head and not having anywhere to turn to for help. Many people hesitate to discuss this issue, fearing social stigma. Not having access to sufficient information about bankruptcy and repossession can lead many people to bury their heads in the sand and hope the problem resolves itself or attempt to soldier through the mountain of debt with little to no forward momentum.
Our team of Lakewood bankruptcy lawyers believes that with knowledge comes power. We want to shed a bright light on repossession and bankruptcy so that residents of Jefferson County don’t have to try and muddle through without help. As such, we have compiled some answers to common questions about repossession in order to provide you with a better understanding of the topic. Hopefully, this will empower you and enable you to make an informed decision regarding your rights and options when it comes to repossessions and bankruptcy in Lakewood, Colorado.
What assets can be repossessed in Colorado Springs?
A creditor cannot repossess something that hasn’t been named as collateral for your debt. 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.
The most common example of a secured debt is a car. Generally, when most people think of “repossessed property” they think of vehicles, however, many types of secured assets can be repossessed if payment for the loan has defaulted. These include
How can I have defaulted on my car loan if I haven’t missed any payments?
Defaulting on a loan doesn’t always refer to missed payments. If you go back and review the terms of your contract, you may find that default can be triggered by various factors, such as not having car insurance if you buy a car through an auto sale company. One of our Lakewood bankruptcy attorneys can help interpret the legal language of your contract during your initial case consultation.
How many payments can I miss in Colorado before my asset is in danger of repossession?
There is no law that says you must be two payments behind or three payments behind before they can repossess your property. 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 (although that doesn’t mean that they *have* to. Many creditors allow two or even three missed payments before sending 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.
What is a Breach of Peace?
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. It’s important to note that if your creditor uses an outside company to repossess your property and the outside company breaches the peace to repossess that property, your creditor is still on the hook for any litigation or penalties due to breaching the peace during the repossession attempt. If your property has been repossessed and you feel like the repossession agent breached the peace, please don’t hesitate to contact an experienced Lakewood bankruptcy attorney.
Will filing for bankruptcy help with repossession in Lakewood?
Unfortunately, this is a question that doesn’t have a universal answer. Each case is unique, and without knowing the specifics of your case, we cannot promise that bankruptcy will help you regain your repossessed property. However, our helpful Lakewood debt relief attorneys offer a free case consultation to each potential 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 Lakewood 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 in Lakewood.
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.
Repossession and bankruptcy are two of the most difficult life events someone can experience. If you are having a difficult time keeping up with your loan payments or have fallen behind due to unforeseen circumstances such as a sudden job loss or medical emergency, you may be in danger of having your property repossessed.
In some cases, filing for bankruptcy can help stop repossession and help you get out of debt. Our Lakewood bankruptcy lawyers have experience with all aspects of Chapter 7 and Chapter 13 bankruptcy, including areas such as repossession. We want to help you in getting your repossessed property back and make sure you’re able to stay afloat while doing so. If you have any further questions regarding bankruptcy or repossession, reach out to our Jefferson County debt relief attorneys today for a free case consultation.