REPOSSESSIONS

By Laura J. Margulies

What is a Repossession?

If you fall behind on a secured loan, the creditor may resort to repossess its collateral. This is a legal process that allows the lender to take back or repossess the property that secures its loan. Property that is subject to repossession include cars, home mortgages, electronic goods, furniture or other personal property bought with a loan as well as items that you already possessed and were pledged to secure a loan.

What this Means to You. 

Should you not be able to get current on your secured loan, the creditor has the right to repossess the collateral (property) securing the loan. In Maryland, a car lender has the right to take your car without first having to sue you in court as long as the person repossessing the car does not breach the peace. Other lenders may sue you in court for a replevin action, which is an action to take back the item(s) securing their liens.

How Our Office Can Help You.

We can file a bankruptcy case to stop the creditor from immediately repossessing your property. After we file, the creditor will need to get bankruptcy court permission to repossess the item. We may be able to negotiate an agreement with the lender that will allow you to keep the item. If the property has already been repossessed, but has not been sold yet, we can file a Chapter 13 bankruptcy case and the lender will be required to return the item or car to you. You may need to prove that you have current insurance on the vehicle.