How And When Could My Vehicle Be Repossessed?
Your vehicle could be repossessed as soon as you miss a payment, but it probably won’t happen right away. If you miss a couple of payments, then you will be in breach of the underlying promissory note which grants security or collateral interest in the vehicle; at this point, the finance company will be allowed to legally repossess your vehicle. The lien that appears on the title of the vehicle gives the finance company a property interest in the vehicle and is governed by Illinois law.
The term “repossessed” refers to any way in which the lienholder gets the vehicle back in its possession. Most people think of the classic example of a tow truck removing a vehicle from a driveway. However, some people will turn over their vehicle to the dealership once they realize they can no longer afford the payments (or realize the car is junk and not worth fixing), and the dealership will turn over the vehicle to the finance company.
What Happens After A Repossession? Can I Get My Vehicle Back?
The law requires the lien holder to send certain documents to the debtor. These documents give the debtor a chance to provide defenses and buy back the car for the full amount. However, most people won’t have a defense, nor the money to buy back the car.
Once those documents are sent and ignored by the debtor, the credit card company has the right to sell the car at an auction. After the car is sold, the creditor will subtract the amount that the creditor received for the sale of the car from the amount that is still owed on the note, and file a lawsuit against the debtor for the resulting balance. Most debtors think that if they voluntarily give back the car to the dealer and the dealer says, “Don’t worry about it,” their problems with the car are over. The truth of the matter is that the debtor will still owe money on the note, and will therefore be obligated to pay back any amount that is still owed on the promissory note after the vehicle will have been sold at auction.
Why Do I Need An Attorney To Assist Me When My Vehicle Has Been Repossessed?
Oftentimes, the note or the obligation on the original loan is sold to a third-party debt buyer, and there is usually a witness who can’t lay a foundation for the document in court. An attorney will know how to utilize the law and certain tactics in a way that requires the debt buyer to prove that they have a right to sue you under the auto loan; many times, the debt buyer will be unable to do this.
For more information on Auto Repossession Cases, a free telephone consultation is your next best step. Get the information and legal answers you are seeking by calling (312) 759-1900 today.
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