The best thing you can do if you are threatened with repossession is to remain calm and learn all you can about the repossession laws and what they mean for you in your situation. Many people go to their friends and family members and ask them for information, which can result in you getting information that is not reliable.
You need to understand the repossession laws and be informed and educated, and that means getting the information from legitimate sources.
Repossession laws are not the same everywhere
Repossession laws vary from state to state and also vary depending on what is being repossessed. The process and laws guiding the repossession of a home are not the same as for a car or even a computer that you have stopped paying on.
The more expensive an item is, the longer you have before the company who owns it can start the repossession process, at least in most states. That means cars and electronics can be repossessed before houses and other property.
You should have signed a contract for the purchase of any of these items and the company has to abide by the payment agreement, fines for non-payment, and the repossession terms in the contract. It may be stated in your contract that your item can be repossessed after as little as one missed payment.
What can be repossessed and how
The laws regarding what can be repossessed and how it should be done are different from state to state. Everyone should be educated about the laws regarding how items can be repossessed because if a company violates these laws while repossessing an item of yours, you could possibly sue for damages.
If you are facing the repossession of any item no matter how big or small, talk to a lawyer specializing in repossession law. A lawyer can tell you if it is being handled properly and if now what you can do about it.
Are courts involved in a repossession?
In some states, the company that is trying to repossess the item has to go to court and has to notify the consumer of its intent to repossess the item ahead of time. In other states, the company can go ahead with the repossession process as soon as the contract is violated and does not have to tell the consumer of its plans.
The easiest way to find out what the repossession laws are in your state is to look online by searching “repossession laws” and the state where you live. You can also find information on laws on repossession at the library or from the Better Business Bureau. Any of these sources will give you information on the the laws for all different types of property.
When you are facing repossession, you should only consider and apply the laws and information for your state and the repossession information for the type of property you are about to lose. The more educated you are about such repossession laws, the better chance you have of saving your property and avoiding repossession.