Understanding Vehicle Repossession
We understand that Vehicle Repossession is no joke. Chances are you rely on your vehicle to get you where you need to go whether it’s to work, school, the grocery store, or the soccer field. But if you’re late with your car payments, or if you don’t have adequate auto insurance, your vehicle could be taken away from you.
Why Your Car was Repossessed
In Indiana, your creditor or lessor has legal authority to seize your vehicle as soon as you default on your loan or lease. Under most contracts, the creditor can repossess your vehicle if you are one day late with a payment. In some states, failure to make a payment on time or to meet your other contractual responsibilities are considered defaults on your loan.
Often, a bank or repossession company will let you get your car back if you pay back the loan in full, along with all the repossession costs, before it’s sold at auction. You can sometimes (with the right lawyer) reinstate the loan and work out a new payment plan, too.
Know Your Rights
Even when your car is towed away, you still have certain protections. The lender or repo agency can repossess the car but not the items inside. In Indiana, the bank or repo agency may be required to give you a list of items inside the car and tell you how you can retrieve them. Your property cannot be damaged in the process either.
Improving Your Credit
A repossession typically stays on your credit report for up to seven years, so a big part of boosting your credit afterward is just waiting. But you can also improve your credit by paying your bills on time and chipping away at your existing balances.
Get the right lawyer. Call today!