When debtors take possession of items without having paid for the items in full, they may be in danger of having those things repossessed. According to the Federal Trade Commission, the company’s ability to repossess the items in question largely depends on whether or not a signed contract exists and the provisions that are contained therein. For example, a contract may state that a man is required to make all payments on time, and if he fails to do so, he may be subject to repossession.
The Oregon State Bar reports that filing for bankruptcy is one of the most protected ways for debtors to stop and prevent seizure of their real and personal property. Whether a person files for Chapter 13 or Chapter 7, all debt collection and repossession activities should immediately cease. Furthermore, the filer no longer has to deal with the practices of debt collectors without assistance, as all further communications regarding the filer’s debts must legally go through his or her bankruptcy attorney.
In some cases, a creditor makes an error and has no legal authority to seize and repossess the property in question. When this happens, it should be straight forward to rectify. Those in this situation should be able to show the original loan agreement, proof of any payments made, and proof that the property was repossessed.
If bankruptcy is not a good fit, some situations may allow people to temporarily halt their property from being taken. In Oregon, those who repossess property are not allowed to use any kind of force, so stopping repossession may be as simple as refusing to give a creditor access to the object. Vehicles on the street are not immune to repossession simply by being locked. However, creditors can go to court to ensure that they are paid for any fees or costs they incur while pursuing the collection of their items.
