Your car may be repossessed by the owner of your auto loan if that creditor has a security interest in your car. Most creditors who issue car loans issue the loan with the car as collateral for the loan. That means that if you stop paying your car loan or default on your loan then your creditor may be able to repossess your car. Before repossessing your car, you creditor must provide you with notice, as required in your state, and with the opportunity to pay all outstanding balances including fees and interests. If you pay all outstanding obligations then your creditor may not repossess the car. If you are unable to pay all of the outstanding obligations, then the creditor may proceed with the repossession without a court order but the creditor may not breach the peace, or break into your garage, in order to obtain your car. If the creditor cannot obtain the car without breaching the peace then the creditor may go to court to obtain an order requiring you to comply with the repossession.
Speak to an Experienced Creditors Rights Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified creditors rights lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local creditors rights attorney to discuss your specific legal situation.