A repossession case is a legal way for a lender to take your property away from you, when you don’t make the required payments. It is a type of action reserved for the taking of personal property, which is not the same as real estate. Commonly repossessed items of personal property includes cars, motorcycles, and boats. In some states a repossession agent can take a person’s car or other items of personal property without a lawsuit being filed, as long as there is not a breach of the peace during the taking. However, it is more likely that the lender will file a lawsuit to take your property, and this type of action is called a replevin.
In a replevin action the lender has to do the following:
• Identify the item sought to be repossessed, with enough description so that the item is easy to spot when the writ of possession is entered. It is critical that the Court has enough information to identify the property, so a wrongful repossession can be avoided.
• Sue for at least the value of the item.
• Seek an order from the Court allowing the property to be seized.
• Set forth information that shows why and how the lender is entitled to take possession of the property. This usually consists of allegations that the loan is in default and that the lender has an interest in the property, as a secured creditor for having made the loan used to purchase the item.
If you receive a replevin suit, you will need to file an answer or you risk losing your property. There may be circumstances that prevent the lender from taking your property, but if you fail to file an answer and set forth those reasons the Court will allow the repossession to take place. One option you have, aside from filing an answer and raising a valid defense to the request to replevin, is to file for bankruptcy. A bankruptcy action will stop a pending replevin request, and will also help you to get the rest of your finances in order. Bankruptcy filings also put an end to foreclosures and wage garnishments. For help deciding what is best for you, call us today.
For more information about repossessions, contact us at www.DsouzaLegalGroup.com.