Owing a significant amount of debt can cause difficulty in multiple areas of your life. From your ability to pay your bills to the stress of dealing with debt collectors calling at all hours of the day, your debt can quickly overrun your life. It can be especially disheartening to learn of repossession efforts against your property.
It may surprise Wisconsin readers that creditors actually do have the right to take back certain property if you do not make payments for an extended amount of time. While it may be your vehicle, it could still be subject to repossession. Despite the creditor's right to do this, there are limits to how it can happen. You may find it beneficial to learn more about this process and your options.
What happens when property is repossessed?
Repossession is the process of a creditor taking back a specific property when a debtor fails to meet his or her payment obligations. In most cases, this pertains to a car or a house. The repossession process can start as soon as the debtor misses a payment. The following things can then happen:
- As soon as the account goes into delinquency, the creditor contacts a third party.
- The third party will attempt to take back the property and try to sell it to pay off the debt.
Despite the fact that it may seem like an invasion of your privacy and disregard for your property rights, a court order is not necessary for a creditor to start the repossession process.
In the process of repossessing a piece of property, a person cannot break the law or disrupt the peace. While the threat of losing your property may be overwhelming to you, there are things you can do to protect yourself and your interests. One of the things you can do is to file for bankruptcy.
Enacting the automatic stay
As soon as you file for bankruptcy, the automatic stay will go into effect. This means that creditors can no longer contact you, nor can they attempt to retake property. This action will halt any repossession efforts against you in the absence of an order from the bankruptcy court.
Consumer bankruptcy offers you the opportunity to deal with your debt in an effective and organized manner. It can also provide you relief from the harassment that you may be experiencing from creditors and debt collectors. You may consider the benefits of bankruptcy if you want to take back your future and secure a better financial footing for your family.