Will They Repossess My Car If I Am One Payment Behind?

Auto finance companies can repossess a car for any default if you’re  one day late. We have seen cars repossessed with only one month in  default. Repossession after only one month is rare but they have the  legal right to do so.

WHAT IS THE REPOSSESSION PROCESS IN ILLINOIS?

Once  an auto loan is in default, the finance company can use self-help. That  means they can repossess the car at any time and they don’t need a  court order. While they are not permitted to take a car off a private  property, that provision is frequently violated.

CAN I GET MY CAR BACK IF I GET CURRENT ON MY PAYMENTS?

Not  necessarily. If you have paid 30% of the total amount due, the law  allows you to get your car back if you come up with the back payments  plus other costs. You are only given 15 days for this provision. This  provision can only be used once so it doesn’t apply on a 2nd repo. Of  course if you pay the full balance and additional costs, you can get the  car back anytime.

WHAT DOES A REPOSSESSION DO TO SOMEONE’S CREDIT HISTORY?

A  repossession will lower your credit score. It’s really the same if you  voluntarily return the car. You don’t get points for doing on a  voluntary basis. Plus you still owe the rest of the loan so your credit  continues to take a hit each month you owe.

CAN A CHAPTER 7 BANKRUPTCY OR A CHAPTER 13 BANKRUPTCY STOP A REPOSSESSION?

Yes.  If you’re behind on your car payments in a chapter 7, it’ll stop  repossession for a short time. Generally the finance company will file a  motion with the bankruptcy court and be given permission to repossess  your car. In a chapter 13, on the other hand, you have the opportunity  to pay the full balance over a longer period up to 60 months.

For more information on Repossession Defense In Illinois, a Complimentary consultation is your next best step. Get the information and legal answers you are seeking by calling today.

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