Creditors generally retain the right to repossess the property you acquire with a purchase money loan. If you stop paying, the lender can reclaim the property. It may choose to sue and get a judgment against you, but it’s not required as long as the repossession is peaceful.

Here’s when you should consider hiring an attorney if your car lender sues you for a deficiency after repossessing your vehicle. If your car-loan lender repossesses your car, van, truck, SUV, or other motor vehicle, it might sue you to recover any money you still owe on the vehicle loan (called the deficiency).

Can a car be repossessed without a court order?

Because the repossession process is outlined in your loan agreement, your lender legally can repossess your car without notice or a court order. But most lenders will call, email or send notices (or all of the above) outlining the consequences if you begin missing car payments.

What happens when a car is repossessed by a bank?

In repossession, a bank or leasing company takes a vehicle away from the borrower, often without any warning. Lenders might send a driver to collect the car, or they may take it away with a tow truck.

How can I protect my car from repossession?

At that very moment your vehicle is protected against repossession, provided no Summons has been issued yet…so don’t leave it too late. One of the benefits, of many, of our debt review program is that we negotiate reduced instalments on your accounts; including your vehicle finance.

Is there a way to stop the repossession process?

If you want to stop the repossession process and keep your car, there are several potential solutions (depending on your state and the terms of your agreement). Your lender or leasing company should explain what your options are, as well as the requirements and deadlines for each option. Reinstate: Want to hit the “Reset” button?