If you are facing financial problems and have been failing to make payments on your auto loan, it won’t be long before the creditor will try to repossess the vehicle. Vehicle repossession is a stressful thing to go through, and unfortunately most people aren’t aware of their rights during the process.
That’s where we come in. Our Wisconsin firm assists clients who are in jeopardy of losing their cars to repossession or have already lost their cars to repossession. Here are several possible solutions to situations involving auto repossessions:
First, did the creditor have a right to repossess your car in the first place? If your creditor has accepted late or partial payments in the past, or otherwise hasn’t required you to abide by the terms of your contract, the terms of your contract may have changed under the legal principal of “estoppel.”
Second, filing for bankruptcy means that an automatic stay will be put into place, blocking the creditor from repossessing your vehicle or pursuing collection actions. While this doesn’t guarantee that you will save your car, it delays the repossession and buys you time to bring your loan current.
Additionally, if you file for Chapter 13 bankruptcy protection, your car payment will likely be significantly reduced, making it easier for you to stay current on your loan and keep your car.
Next, if your car has already been repossessed and your creditor decides to resell the vehicle, you have rights under the law. If you car was resold or put up for bid at an action without your knowledge, you could potentially be able to sue the creditor for damages.
Finally, If your creditor repossessed and resold your car and is now pursuing your for the a deficiency judgment (the difference between what you owed on the auto loan and what the car resold for), it’s possible that your creditor does not have the legal grounds to do so.
If the appropriate procedural or notification protocols were not followed, it might mean that you are off the hook for the deficiency judgment.
For more information, please visit our Milwaukee Auto Repossession Attorney page.