Repossession is the process by which a creditor seizes your property if the payments get behind. The most common form of repossession is when a person’s automobile gets taken. After the auto is taken, it is generally sold at an auction. If the auction price does not cover what you owe (it rarely does), you are still responsible for the difference. The creditor usually then attempts to garnish your wages or bank accounts to collect the deficiency balance.
Chapter 13 offers protection from the seizure of your property. Once you have filed your Chapter 13 petition for relief, no creditor will be able to legally seize any of your property! If the property has been seized, the creditor must return the vehicle to you (provided that is has not yet been sold). You will then propose a plan of repayment to the creditor to pay the account delinquency over a period of years. This is a very powerful tool if your property is about to be, or has been repossessed by one of your creditors.
For more information on repossession, call Spiroff Law at 614/224.2104.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.