Due to the irregularities in car payments, the creditor may take possession of your car without notice. Without the contract gives a grace period, the car can be repossessed if you are only a day late. You are not required to give the car to the creditor, but they may take it from the street or a parking lot. Concealment of the vehicle with intent to hinder the creditor is a crime. If the car is repossessed, the creditor may sell the car at an auction, and you may still have to pay the balance remaining on the loan after sale of the vehicle, plus the creditors collection expenses.
If a car has been repossessed but not sold by the creditor when the case is filed, the court may order the creditor to return it to you, provided you have cleared repossessed car debt.
Under the repossessed car debt consolidation provision, interest charges may be reduced, and your monthly payments can often be lowered. You may be able to keep the car by paying its real value, even if this is much less than the loan balance. Thanks to this provision, you pay for the car in a single monthly payment that consolidates all of your bills. Often this one payment is lower than your old car payment alone. An expert attorney can give you an estimation of what this monthly payment would be in a free, no obligation conference. Actually your credit holds the key as when you finance or lease a car, truck or other vehicle, your credit holder holds important rights on the vehicle until you've made the last loan payment or fully paid off your leasing obligation.
These rights are established by the signed contract and by state law. For example, if your payments are late or you default on your contract in any way, your credit may have the right to repossess your car. In many states, creditors can do this legally without going to court or warning you in advance, as long as they do not break the peace. In addition, your creditor may be able to sell your contract to a third party, called an assignee, who may have the same rights and responsibilities as the original creditor. However, some state laws limit the ways a creditor can repossess and sell a vehicle to reduce or eliminate your repossessed car debt. If any rule is violated, the creditor may be asked to pay you damages.