Stop Repossessions in Arizona
Stop Repossessions in Arizona through filing for bankruptcy. Despite the fact that you are behind in payments to a lender for a vehicle, you do have rights in Arizona. Our Arizona Stop Repossessions lawyers can help you not lose or get back your ride.
While it is possible to stop repossessions by filing a petition for personal bankruptcy, this may only be temporary. The creditor also has rights to repossess a car during a Chapter 7 and 13 bankruptcy. Auto loan lenders are secured lenders because they normally file liens against vehicles, which gives them rights to the vehicle. Also, assets that are not protected by state or federal law are sold in a Chapter 7 bankruptcy to repay creditors. If you are facing a vehicle repossession, you do have rights, and the person doing the repo has to follow the law when they take away your personal property.
Have you ever heard of the “repo man“? The repo men are not allowed to “breach the peace.” That is a phrase that has a broad definition, but essentially they are not allowed to use force when repossessing a vehicle. Nor are they allowed to hot-wire cars, or use a duplicate key, or take a car from a locked garage. Typically, a repossession will occur when an owner is asleep or has left the vehicle for a long period of time.
Be aware that the repo company may not take your personal property inside your vehicle. A creditor is supposed to take reasonable care of your items, and be able to ]account for your belongings left in your vehicle. Call an attorney at My AZ Lawyers about your rights to compensation for these personal items if you are in a similar situation. An attorney will help you understand your rights in this matter.
It is important to know that it is possible to get a repossessed vehicle back by filing a Chapter 13 bankruptcy. Retaining an experienced Arizona bankruptcy attorney at our firm as soon as possible after the repo is the best thing to do in this situation. Our attorneys will give you options and help you to make good decisions on how to proceed.
how can I stop a repossession? Do I have options?
Bankruptcy can stop a repossession. Because filing for bankruptcy starts the automatic stay, it immediately stops all creditor collection actions, including repossession of personal property. A repossession is instantly stopped when you file Chapter 7, Chapter 11 reorganization, or Chapter 13 individual debt adjustment with the U.S. Bankruptcy Court.
If you borrowed money to purchase a vehicle, the automatic stay from filing bankruptcy in Phoenix stops the creditor from repossessing it. The creditor cannot proceed with a civil lawsuit against you (for the remaining balance owed) if the vehicle has already been repossessed. A judgment against you to garnish your wages must stop as well. It is best if at all possible to stop repossessions in Arizona so you don’t end up with a wage garnishment.
Negotiating PaymentsAnother option to stop repossessions besides bankruptcy, if you behind on your vehicle payments, is negotiating payments with the creditor. By contacting the creditor you may be able to make payment arrangements on your vehicle. It’s easier to prevent a repossession of a vehicle in Arizona than it is to dispute it after it has been repo-ed. Anytime you realize you will be late with a payment, it is wise to contact your creditor. You may also be able to ask for a delay in your payment or adjust your schedule of payments. Many creditors are willing to work with debtors to stop repossessions if they see that there is a possibility that they will receive payment. Make sure you have any modified original contracts in writing, if you do reach an agreement with the creditor. An Arizona bankruptcy attorney can help with the legal details.
Turning In Your VehicleVoluntarily turning in your vehicle? By agreeing to do this, you may lessen expenses. Expenses which you would be responsible for if your vehicle would be repossessed. If a creditor refuses to accept a late payment agreement on the vehicle, they might just demand you return it. You are also responsible for paying on the deficiency on your contract. Also, late payments or repossession could have a negative effect on your credit report.