Los Angeles Repossession Lawyers
You’ve missed a couple car payments and now you fear the worst: your lender is about to send out the repo man to take possession of your car. What do you do? Helpfully, borrowers in California have certain rights, and you might be able to fight off a repossession or get back possession of your car. You should act fast. Please call Wadhwani & Shanfeld today to speak with our Los Angeles repossession lawyer. Time is of the essence.
Can a Lender Really Take My Car?
Yes! When you took out a car loan, you also gave the lender a security interest in the car. That interest gives them the right to repossess their collateral whenever you default—without the need of going into court and suing you. Repossession is entirely legal in California. What’s more, some lenders use security interests for all sorts of loans, such as furniture loans.
Fortunately, you have some options if you have fallen behind on your car payment:
- Redemption. If you can pay off the loan, then you can get your car back. However, to redeem the loan, you will end up paying the entire balance at once, along with other fees and costs, like the fees for repossession or storage. Your creditor should send you a notice explaining how to exercise your right to redemption, along with the deadline. Unfortunately, most people don’t have the money to pay off their entire loan. If they did, their car wouldn’t be repossessed!
- Loan reinstatement. You might be able to reinstate the loan by catching up on past-due amounts. Once the loan is reinstated, you continue on with monthly payments.
- Negotiation. If the lender hasn’t taken your car, then you might have luck negotiating with the lender. For example, you could try to modify the terms of the loan, such as lowering the interest rate or even asking for a temporary break in payments. Many people are afraid to negotiate on their own behalf, so you might want to work with a lawyer.
Bankruptcy Can Help
Filing for bankruptcy might also help you keep your car:
1. When you file, the automatic stay prevents all collection activity, including car repossessions. Of course, the stay can’t unwind a repossession that’s already happened, but it can keep the repo man away.
2. By discharging debts in bankruptcy, like credit card debt, you can free up more income to pay your car payment.
3. In a Chapter 13 bankruptcy, you can use a “cramdown” which will reduce the principal on your car loan to its value. This is a great option if your car is worth less than the remaining balance on your loan. The excess principle is converted to unsecured priority debt, and you’ll most likely pay only a percentage of that.
We Can Stop a Car Repossession!
Contact our Los Angeles repossession lawyer for immediate assistance. Wadhwani & Shanfeld has kept many people behind the wheels of their car by working out a loan modification or filing for bankruptcy.
