Many Ohio consumers have at least some debt, but you may find that you are in a position in which you can no longer effectively manage the debt that you have. There are many unpleasant consequences to having debt, unpaid bills and owed balances, and one of these is the threat of repossession of your vehicle. Depending on the types of debt you owe, it is possible that a creditor could move to take possession of your personal vehicle.
It seems outrageous that a person could simply walk onto your property and take your car, but it is possible. However, no matter how in-debt you are or the details of your current financial situation, you could make the threat of repossession stop. By filing for bankruptcy, you can make repossession efforts halt, as well as deal with your debt once and for all.
How repossession works
Whether you know it or not, you likely agreed to the creditor’s right to repossess your vehicle when you signed on to purchase or lease it. It can be helpful to understand how this process actually works, which includes the following steps:
- The creditor can take the initial steps in the repossession process as soon as the account holder is late on payments.
- In almost every situation, the creditor will hire a third-party to actually take physical possession of the property.
- The repossessed property can go back to the creditor or it may be subject to sale, with the proceeds going to the creditor for owed balances.
- Creditors do not actually need a court order to start the repossession process.
Creditors can do a lot of things, including send you letters, call you, text you and even repossess your property, but there are limits to their rights. For example, they cannot breach the peace in their efforts to repossess an item. This means that in most cases, they cannot come onto your private property to do this.
Fighting back against the threats of creditors
By filing for bankruptcy, you will enact the automatic stay. This immediately halts all contact from creditors, including phone calls and letter. Additionally, they can no longer move forward with the repossession process.
Bankruptcy may not be your first choice, but it could be the most appropriate way to deal with debt, discharge balances and keep your personal property. You may find it beneficial to learn more about which chapter of consumer bankruptcy is most beneficial for your financial situation.