Having your vehicle repossessed is like losing a faithful companion. For some, it can be nearly as devastating as losing a loved one. It is not an overreaction; life without a personal vehicle is unbearable in some US states, especially Massachusetts.
Besides enabling people to travel back and forth more efficiently, many small business owners rely on their vehicles to meet their customers’ needs. As a result, an imminent car repossession can cause mental and physical stress for the borrower.
If you have tried renegotiating or asking for more time without success, seek legal counsel. Hiring an attorney can make all the difference in ensuring you keep your vehicle while retaining a cordial relationship with your financier.
A car repossession lawyer can help you conceptualize various ways to fulfill your obligations to the creditor without pressure. Here is how a car repossession attorney can help you get out of a difficult situation.
1. Dispute Resolution or Renegotiation
Repossession can be messy, especially in states with the worst public transport systems, like Massachusetts. It may cause tension or a relationship breakdown between the creditor and the debtor. The resulting disputes may escalate without expert intervention.
A Massachusetts car repossession lawyer can help de-escalate the situation to favor both sides. When you involve them, they ensure all parties reach a compromise within the law while respecting the repossession contract.
In addition to the dispute resolution, your lawyer can help adjust the terms if you struggle with repayment. Although a bold move, lawyers contact the lender to schedule a renegotiation meeting on behalf of their client. Renegotiation may pertain to a repayment structure revamp or a major modification of the loan agreement.
2. Repossession Prevention or Delay
Creditors are obliged by law to formally notify debtors of an extended repayment deadline. However, the “grace period” provided by the creditor may not be sufficient to meet the repayment requirements. If you are ever in this position, an attorney can help you buy more valuable time. In fact, they can delay the process or prevent it from ever occurring.
· Loan Contract Cancellation
Although rare, an attorney can prevent a repossession by establishing the agreement null and void.
The average person doesn’t read the terms and conditions of applying for a service, including borrowers. Lenders understand this, yet they may include certain clauses to trap borrowers.
Only a legal practitioner can identify these loopholes. Upon proving that the creditor is not operating in good faith, they can help restructure or even make the loan contract null.
· Repayment Delay
Alternatively, attorneys may provide repossession delay options such as a voluntary vehicle surrender. Although you relinquish ownership of the vehicle, it absolves you from incurring deficiency balances and a repossession.
You also have the option of selling the vehicle for a good price that leaves you with a net positive balance after repaying your loan. This option benefits you financially more than having the creditor auction your vehicle.
Repossessed vehicle auctions are not always lucrative. Many times, vehicles are sold for less than their market value, which may result in you owing the creditor certain balances after losing your car.
· Filing Bankruptcy
If the attorney’s assessment of the repossession case proves that buying you time can help resolve the issue, they can delay the process. Some lawyers may advise and help you file for Chapter 13 bankruptcy. This legal action halts repossession plans, allowing you more time to make loan repayments and clear your debts.
3. Legal Defence Against Wrongful Repossession
Not all creditors or repossession companies play by the rules. While some blatantly breach repossession or loan terms, others may bend the rules to avoid legal consequences. Working with an attorney enables you to identify unethical or unlawful practices to prove illegal repossession.
Vehicle repossession law varies across all US states. Thus, you must be sure of what applies to your location to avoid being wrongfully repossessed. For example, creditors can only repossess vehicles without intimidation, violence, or threats, especially on private property.
In addition, a repo company cannot seize vehicles parked on the loan defaulter’s property without permission. It is considered a “breach of peace” for which the repossession personnel or company can be charged. If the lender violates any state legislation, your attorney can sue or represent you if the case goes to trial.
4. Post-Reposession Defence
The post-repossession phase can be tricky. This is where the lender tries to recover money loaned out, usually by auctioning the car. An attorney will ensure that you get the correct surplus or profit made on the sale (if it exceeds the amount borrowed).
However, if the car sells for less than the loaned amount, the lender may want to sue for additional payments or a deficiency balance. An attorney can help prove that the creditor’s inability to profit from the vehicle sale is due to their incompetence. This argument can absolve you from losing your car and yet remain indebted to lenders.
Per law, the borrower is entitled to their belongings in the vehicle during repossession. It can be tricky, as personal items may be lost during the repossession process. An attorney will make sure you recover all your belongings from the car after repossession. If any personal item was lost or damaged, they will hold the repo company or lender liable and demand fair compensation.
Conclusion
Your chances of avoiding repossession will increase only if you seek legal counsel when facing a vehicle repossession. Working with an attorney can make a world of difference in ensuring you maintain your car without the pressure of being indebted to creditors.
From preventing or delaying repossession to defending you in court, a lawyer is probably your best chance at repaying your loan stress-free, while you keep your car.
Life without a vehicle can be a nightmare, especially in Massachusetts. You don’t want to take the chance. Contact a car repossession lawyer today; you’ll be glad you did.
