Can I Stop Repossession from Happening?
If you fail to make loan payments on time, a lender may repossess the asset. If you take out an auto loan, it is common to use the vehicle as collateral. As a consumer, it is important that you understand the terms of your loan agreement so that you are informed of your legal rights. If you are unsure whether repossession is allowed for nonpayment regarding your current car loan, then you will want to speak with a Columbia repossession lawyer today.
What is Repossession?
When you take out a car loan, the loan document will specify what will occur if you default. Typically, your car is the collateral on your loan, so if you fail to make payments based on the agreed-upon schedule, your lender is allowed to repossess your vehicle.
As the borrower, you have legal rights when you take out a loan. After you go into default, your lender will send you a Notice of Right to Cure, which will give you 20 days to rectify the situation. If you do not resolve the situation after this time, then your lender is allowed to repossess your car. However, credit unions typically do not send a Right to Cure Notice since they are exempt from this law.
There are other situations in which you may default on a loan without missing payments. This involves anything that breaks your contract with the lender, such as taking the car out of state permanently without permission, damaging the vehicle so that its value is permanently reduced, or failing to maintain insurance coverage. In these situations, the lender is not required to send a Right to Cure Notice
Redemption Period
Once your vehicle is repossessed, you will normally be given 10 days to take action to get your car back. The lender will send you a letter detailing what steps need to be taken. This may involve either catching up on payments so that your loan is current or reimbursing the lender for any repossession costs.
However, if you cannot come up with the money to make your loan current, a debt relief attorney may suggest that you file Chapter 13 bankruptcy to get the vehicle back. This will place an automatic stay, stopping your lender from re-selling or otherwise disposing of the vehicle, and giving you a chance to get it back.
Can a Creditor Garnish My Wages?
Unlike some debts in which the amount owed can automatically be deducted from your paycheck, a creditor cannot garnish your wages if you have defaulted on a loan. If a creditor threatens to garnish your wages or to press criminal charges against you, do not hesitate to reach out to the Columbia bankruptcy lawyers at Reed Law Firm, P.A., immediately.
Contact Our Columbia Repossession Attorneys Today
There is no denying that times have been tough for the middle class. With the rising cost of inflation, salaries do not stretch as far as they did in the past. Falling behind on payments can make you feel like a failure. Worse yet, if a lender attempts to repossess your vehicle, you may feel like you have run out of viable options.
At Reed Law Firm, P.A., we have experience representing clients in all of South Carolina. Our legal team understands that you have likely taken all measures to rectify your financial issues but still need help. If you are ready to learn how our Columbia repossession lawyers can help you, contact us online or by phone today to arrange your free consultation.
