What Is Repossession Of Personal Property?
The law is full of definitions and ways to characterize certain things. Your house is defined as real property, but your car is considered personal property. The distinction is important because if a lender tries to sue you for non-payment the type of property dictates the type of lawsuit filed. In order for a lender to take back real property a foreclosure has to be initiated. But when creditors seek to take back their personal property it is referred to as a repossession.
If a lender is trying to repossess personal property and has to resort to the legal system to try and take back property in which they have a security interest the case is called a replevin. This is how it works:
- A lawsuit is filed where the creditor asks for their property back and claims to have a right to possess the property that is superior to your right to keep your things. This right is generally based on the fact that until the loan is paid in full the lender has rights in the collateral that is the subject of the note.
- Most times the property is not ordered to be returned to the lender until a judgment is entered that says the creditor is entitled to possession of the item of personal property.
- There are times, however, where a lender will ask for an order of possession prior to the judgment being entered. If this document is part of your case it is crucial that you contact an attorney to make sure the request is proper. If you do not fight the request for an order of delivery prior to the judgment being entered you run the risk of losing your property before the case is even decided.
Waking up to find your car no longer sitting in your driveway is shocking and can create a real hardship. In order to avoid this harsh reality, take steps to prevent a repossession before it is too late. If you are behind on your payments and your lender is unwilling to work with you it is time to consider your options. We have experience helping people deal with overwhelming debt and can help you too. Whether bankruptcy or some other debt workout remedy is right for you, we know how to protect your property and get you back on your feet financially.
For more information about repossessions, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.