On the Credit InfoCenter website, I’m happy to report, Indiana is listed in the “peaceful repossession allowable” category. As a debt consolidation lawyer offering Indiana bankruptcy help, dealing with cars, car companies, and car owners often takes up an important part of my workday.
“In many states,” the Federal Trade Commission’s website explains, “your creditor can seize your vehicle as soon as you default on your loan or lease.” As every Indiana bankruptcy attorney well knows, Indiana is one of those states. Creditors here have the right to take possession of your vehicle immediately upon default of a car loan or car lease payment, even if (as my Richmond, Indiana bankruptcy lawyer colleague reminds his clients) they are taking it off private property!.
So what is this “peaceful repossession” stuff the Credit Info Center is referring to?
“A secured creditor may sell, lease or otherwise dispose of the collateral (the car) in a commercially reasonable manner, by public or private sale.” An important detail that my Bankruptcy in Indiana readers should know about car repossession in Indiana: If the sale doesn’t satisfy the entire debt owed, the lender can still sue the debtor for the difference!
“Reasonable notice of the time and place of the sale is required to be given to the debtor and to other secured creditors. This is where, even if the car has already been repossessed, Indiana bankruptcy law can come into play. Bankruptcy Chapter 7, for example, can help by freeing up money that had been going towards other debts to be used to repay missed car payments and “redeem” the vehicle. Under Chapter 13 bankruptcy law, the missed car payments become part of the three to five year debt repayment plan, and the creditor is required to immediately return the repossessed vehicle.
- "Any time before the disposition of the collateral, a debtor may have a right to redeem the collateral by tendering full payment of the obligation owed and all reasonable expenses incurred by the creditor.” Sometimes, these terms can be negotiated. In fact, one of the kinds of help we offer at each the five Zuckerberg bankruptcy law offices is negotiating with car lenders to try to set up a revised payment plan.
As I have said over the years, one very important form of Indiana bankruptcy help we offer is keeping debtors in the driver’s seat. It doesn’t do anyone any good to have you unable to get where you need to go in making your fresh financial start through bankruptcy in Indiana!
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg