Repossession can leave you both financially and emotionally crippled for years, which is why it’s vital to take preventative measures to avoid repossession at all cost.
Our Salt Lake City car repossession attorney at JMM Legal warns that a vehicle repossession remains on your credit report for seven years.
Not to mention that a car repossession results in other negative consequences such as being sued in court and spending an enormous amount of money on the legal battle, having your account turned over to a debt collection agency, and facing a wage garnishment (when your employer will be required to withhold a certain amount in your paychecks to pay off the debt).
While the financial and legal damage of a repossession becomes less severe over time, it is still not something you’d want to joke around with, our best car repossession attorneys in Salt Lake City warn.
What is car repossession?
In order to understand ways to avoid a repossession, let’s figure out what it is. In plain English, repossession means that the lender is reclaiming ownership of the vehicle that has not been paid off by you.
While cars are the most common asset eligible for repossession, the lender could also reclaim ownership of assets such as real estate, property, jewelry, artwork and other assets that could be sold to pay off the unpaid debt balance.
How car repossession works in Salt Lake City
Our repossession attorneys at JMM Legal explain that the lender can reclaim the car as soon as a credit account is delinquent. In fact, the lender of a car loan is not even required to give you notice and can repossess the vehicle tied to the loan if you fail to make the payment in time.
However, our car repossession lawyers warn that there are certain procedures that lenders must follow when repossessing assets. In particular, they cannot “breach the peace” when reclaiming the vehicle. Meaning: using threats or force is not legally acceptable.
Reversing a repossession is almost impossible, which is why it’s highly advised to exhaust all legal means to prevent your vehicle from being seized. “But how?” you may wonder.
Well, our car repossession lawyers at JMM Legal have prepared a guide on how to avoid a repossession in Salt Lake City and other cities of Utah.
How to avoid car repossession?
If your financial situation gets out of hand and you realize that you won’t be able to pay your next payment on a loan, pick up the phone and contact a car repossession attorney right away.
The second step would be to provide the attorney with all relevant information regarding your loan. Your attorney will then reach out to your lender and negotiate a settlement before you miss your first payment.
Representatives from banks or credit unions are people, too. So in order to avoid a repossession, you don’t have to threaten to sue them if they attempt to repossess your property.
Instead, your car repossession attorney will offer them a reasonable proposal and explain to them when the next payment will be made.
You have to understand that, depending on your loan, the lender may react differently to your inability to pay off the debt. That’s why it’s vital to adapt, be proactive and be prepared for any response from your lender.
Some lender is willing to compromise and agree to a payment arrangement plan, others, meanwhile, would be less interested in compromising, and would do whatever it takes to take back the property.
In these cases, you need a skilled car repossession lawyer by your side. Here at JMM Legal, our experienced attorneys are available 24/7 to review your debt situation and help you avoid a repossession by crafting a personalized plan for you.
Consult our Salt Lake City vehicle repossession attorneys to find out your best course of action. Call JMM Legal at 1-801-505-9679 or complete this contact form.