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Repossession (noun): the action of retaking possession of something, in particular when a buyer defaults on payments.
Many times, when people hear repossession, they automatically assume that the property in question is a car. However, you may note from the definition above, that nowhere is the word car mentioned.
If this is the first time you’re thinking about repossession in terms of something other than a car, don’t worry, you aren’t alone. In general, repossession isn’t something most people have to think about, and it certainly isn’t something that’s discussed in everyday conversation.
But if you’re behind on your mortgage or car payments, if you’ve been unable to meet your basic monthly expenses, such as groceries, housing, and transportation, or if you’ve been losing sleep or suffering extreme anxiety due to worry and stress over money, then repossession and bankruptcy may be on your mind.
Our team of experienced Fort Collins bankruptcy lawyers believes that with knowledge comes power. We want to break down the locked door surrounding discussion about repossession and bankruptcy so that residents of Larimer 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 Fort Collins, Colorado, and the surrounding areas.
What assets can be repossessed in Fort Collins?
One of the most disheartening parts of struggling with debt is the fear that your property may be taken from you. Our Fort Collins bankruptcy attorneys want to shed light on what can and cannot be repossessed in Colorado, for your peace of mind. 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 long does the repossession process take?
A creditor can start the repossession process almost immediately if your account goes into delinquency. That means, in Colorado, there is no set number of payments you can miss before your asset can be repossessed. However, our Fort Collins bankruptcy attorneys have found that the timeline for repossession can depend upon several factors, most notably the type of property you have that is up for repossession.
For example, if you financed a washer and dryer set from a department store, those types of creditors generally allow several missed payments before they start the repossession process. Probably because it can be a real pain for these companies to repossess something inside of your locked home.
On the other hand, many car financers have been known to start the repossession process after one missed payment, or if they find out you have breached or defaulted on your loan in some other way. For a more detailed look at the repossession process, please contact our Fort Collins bankruptcy attorneys.
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.
How many payments can I miss in Larimer County before my asset is in danger of repossession?
As mentioned above, there’s no specific answer to this question, as every creditor has their own repossession timeline, which is generally outlined in the loan agreement you sign during purchase. 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.
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.
How can bankruptcy help with repossession in Fort Collins?
Unfortunately, this is a question that doesn’t have a universal answer. The scope and specifics of each bankruptcy filing are unique, and without knowing the details of your case, we cannot promise that bankruptcy will help you regain your repossessed property. However, our helpful Fort Collins bankruptcy lawyers offer a free case consultation so that you can tell us the facts of your case and we can provide you with the best debt relief options for your specific needs.
Broadly speaking, bankruptcy can halt repossessions, but if and how you keep that property after your bankruptcy case has been discharged is something you’ll need to discuss with one of our experienced Fort Collins debt relief attorneys.
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 secured loan payments and avoid repossession is by filing for Chapter 13 bankruptcy in Fort Collins.
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.
Our Larimer County area debt relief lawyers have 30 combined years of practicing bankruptcy law in Colorado. Our focus is on ensuring that our clients understand how Chapter 7 and Chapter 13 bankruptcy works and whether bankruptcy is the right option for their unique financial circumstances. To that end, our Fort Collins bankruptcy attorneys offer a free case consultation, which gives us the chance to present you with your best options for debt relief and get you started on the road to rebuilding your financial future.
You don’t have to live in constant fear of your car being repossessed. Right now, you can contact our law office and make sure you have the ability to get to and from work, pick up your kids from school, and run simple errands. We are ready to help.