What Happens to My Debt After Repossession?
When you sign a loan document, it is crucial that you stay up to date on payments. If you are unable to afford payments, ignoring the problem will not solve anything. In South Carolina, if you fall behind on payments, a creditor is allowed to repossess your property. However, your lender must send you a notice explaining how to get your repossessed property back.
If your property has been seized, do not hesitate to contact our Florence repossession lawyers to discuss your legal options.
How Can I Stop Repossession?
To repossess your property, there must be a clause within your loan agreement that states that your property can be repossessed if you do not adhere to the payment schedule. This is most often the case with car loans, in which your vehicle will be put up as collateral to secure the loan.
Your lender will send you a Notice of Right to Cure after you are late on payments, specifying what steps you need to take to make your loan current. You will be given 20 days to resolve the issue. Otherwise, your lender can seize your property. If you are late on payments in the future, your lender is not obligated to send you another Notice to Cure.
Repossession Process in SC
Under South Carolina law, if you have paid 60% of the original loan amount on the vehicle, then you can require your lender to sell your vehicle within 90 days. This will allow you to pay off the full loan and even receive extra if the sale amount exceeds the loan balance.
Your lender can repossess your car in one of two ways, either through self-help or filing a Claim and Delivery lawsuit. If your lender uses self-help, then they can tow your vehicle from your private driveway. However, the self-help process does require that the repossession be peaceful. If you intervene and ask the towing company to stop, then it is no longer peaceful removal, meaning that your lender will have to stop repossession measures.
The other type, a Claim and Delivery lawsuit, requires that your lender serve you papers before repossessing your vehicle. You are also entitled to a hearing before having your car repossessed. If there is an extenuating circumstance, then your lender may be able to override this process. You may be able to raise certain defenses, such as stating that required notices were not sent to you or that the lender did not sell your vehicle in a “reasonably commercial” manner.
Can I Get My Property Back After Repossession?
Once your lender repossesses your car, they will send you a Notice of Sale, which will detail when they plan on auctioning off your vehicle and if they plan to do so at a public or private sale. You will typically have another 10-14 days to “cure” the loan by making all your late payments and, in some cases, paying any repossession fees.
What Happens After My Lender Sells My Car?
If your lender sells your vehicle, but the sales price does not cover the amount due on the loan, then there will be a deficiency. You will be responsible for paying the remaining balance, or the lender can sue you for the remainder if you do not pay. If you are sued, you may also be required to pay attorney’s fees, court costs, and repossession costs.
Advocacy During Financial Hardship
When you hire the Florence repossession attorneys at Reed Law Firm, P.A., you are working with individuals who will advocate for your best interests. We understand that individuals seek debt relief for a variety of reasons, many out of their control. Our legal team maintains a nurturing perspective while reviewing your options so that you can make a well-informed choice.
Reach Out to Our Florence Repossession Lawyers Today
At Reed Law Firm, P.A., our team of attorneys is devoted to helping clients through financially strenuous times. Even if your property has been repossessed, you may still have legal options to rectify the situation. If you or a loved one are unable to keep up with car or student loan payments, our legal team wants to hear from you. To learn how we can be of service or to arrange your free consultation, contact us online or by phone today.
