If you are behind on car payments, you may be worried about the lender repossessing your vehicle. You may have even heard horror stories about people who lost their cars while attending a funeral or watching their child’s baseball game.
Although your lender is legally allowed to repossess your vehicle when you violate the terms of the loan agreement, you still have rights that the repossession contractor must respect. If you are drowning in debt and think you will violate your loan agreement as a result, turn to the Law Office of Stuart M. Nachbar to discuss your options.
Mr. Nachbar has been helping clients reclaim their financial freedom for more than two decades. Call 973-567-0954 to schedule a consultation with a bankruptcy lawyer in New Jersey.
Can the Bank Repossess My Vehicle Without Giving Me Any Notice?
In general, lenders can repossess your vehicle without giving you any advanced notice; however, there are some exceptions to this rule. For example, if creditors want to repossess a car that belongs to someone in the military, they typically need to get a court order first. In such a scenario, the individual would receive notice of the legal proceedings ahead of time.
If you want to learn when the lender may repossess your vehicle without notice, review the original loan agreement. This document should address the circumstances under which the creditor can take back your car.
What Is the Right to Redeem?
The redemption process varies from state to state, but in general, you must pay off the entire car loan before you can get your car after the lender has repossessed it. In the state of New Jersey, for example, the creditor must send you a Notice of Repossession and Right to Redeem by mail, and they must give you a reasonable amount of time—approximately 10 to 14 days—in which to redeem your car.
In this notice, the lender must explain your options, which ultimately depend on the original loan agreement. If you want your car back, the creditor might require you to pay off the entire loan or any arrearages in order to make it current again. You will also have to cover late fees, interest, and any additional costs associated with the repossession.
Can I Get My Personal Belongings Back If the Bank Repossesses My Car?
If you left personal belongings in your vehicle and the bank repossessed it before you could take them out, you have the right to get them back, as long as they are not attached to the car. For example, you can get your gym bag and phone charger back but not the upgraded stereo system or custom seat covers.
If you think the bank may repossess your car, turn to the Law Office of Stuart M. Nachbar as soon as possible to discuss your options. Mr. Nachbar is a chapter 7 bankruptcy attorney in New Jersey who offers assistance with debt consolidation and other financial matters.
Call 973-567-0954 to schedule a consultation. You can learn more about bankruptcy proceedings in New Jersey by visiting the USAttorneys website.