The Ins and Outs of Avoiding Car Repossession: Legal Options When lenders threaten to repossess a vehicle, many people start exploring ways they can take to prolong the process. That being said, the issue of hiding/locking a vehicle also comes with legal consequences that differ greatly state to state.
Repossession Legal Framework
State Laws: Each state has its own laws on repossession. While technically a court order is not necessary for lenders to repossess vehicles once payments are missed (assuming they do not breach the peace in doing so)123 In the states of Florida and Illinois, for example, creditors may quietly enter a borrower’s property to remove or disable a parked car on which they have failed to make payments. 35
Breach of Peace- Breach of peace is one such term that often crops up in repossession cases. Anything that might look intimidating or violent during the repossession process 26Most states prohibit a repossession agent from using physical force to take your car or entering private property that is locked without permission. That means, while concealing a vehicle could delay the inevitable; once found if leads on to legal action taken against the debtor.
Tips to Postpone Repossession
Talk to Your Lender: The best action you can take if facing a potential repossession is communicating openly and directly with your lender. Most lenders are usually willing to enter into payment plans or even offer grace periods if they’re told about money problems up front 56
Know Your Redemption Rights: In numerous states, if your vehicle is repossessed and offered available to be purchased at closeout a short time later because of you being behind on payments, the debtor has an option referred to which as rights down redeem his/her car by paying off in most full amount owed before he or she sells that after repossession. When we know these rights, it provides individuals with the power to take control of their situation and in turn not feel a need to move or hide vehicles14.repossession (ad)
Legal Consultation: Nothing can take the place of seeking legal advice with consumer rights professionals who are well-versed in state-specific laws and your specific situation. This may provide insights into the risks of hiding a car and, if viable solutions are available for postponing repossession13.
Conclusion
As much as this might seem like a convenient way of keeping the car until you are able to resume making regular payments, it is fraught with legal ramifications (which I will also explore further down). State laws and communication with their lenders could address those financial challenges related to auto loans a whole lot better without legally overstepping boundaries of the individual.
