What to do if you have been repossessed
There are hundreds of repo companies in the Houston area and odds are you might run into one if you are late on your car payments. Your finance company, bank or your dealership hires on a wrecker service to pick up the vehicle. So what now? In this blog we will talk about your next steps to getting your car back and your rights when it comes to repossession and some last resort options.
Before getting your new car you had to apply for a loan through a bank, finance company or even the dealer. When you get approved you sign an agreement stating you will make payments and pay off the full amount owed plus interest. If you someone has delinquent payments they are susceptible to repossession. In the state of Texas a lender can sign a repossession order just 1 day after a missed payment. This isn’t all companies some can be more enforced and some don’t repo at all, most will work with you long before it comes down to repo. If you feel you are struggling to make a payment call and let them know the situation. A little communication can go a long way.
What actually happens to your vehicle when it gets repossessed? When a vehicle is collected for collateral it is then sent off to be auctioned so the lender can get some of their money back. Usually the value of the collateral is depreciated significantly and the owner of the car will still have to make payments to the remaining total. Typically in the state of Texas, the finance company, bank or dealership has to wait at least 10 days before it can get it set up for auction. If your car has been repossessed then the first 10 days are the best time to act. Call your finance company immediately, see if there is any way to work with them.
As a debtor you have certain rights when it comes to collection of collateral. You are allowed all of the personal property inside your vehicle, and all property will be returned to you by either the lenders or the towing company. For the collateral collections agent they are not allowed to “Disturb the Peace” meaning they cannot mess up any property at the scene such as gates or yard work. It has to be a clean swift grab and go. A repossession agent cannot harm or harass you, but you cannot harm or harass them either because overall they are hired to collect your vehicle and are legally doing their job.
Last Resort Tip: A repossession stays on your record for a total of seven years and can seriously damage your credit. Not to mention even if you lose the vehicle you will still be responsible to pay back the lender the full amount promised at signing. filing for bankruptcy can stop a repossession in its tracks. If you are aware you have not been able to make payments or are falling behind on them you can file for a Chapter 7 Bankruptcy, this cuts off all debtors that are trying to receive collateral this is called an Automatic Stay. This is an absolute last resort and doesn’t guarantee the repo company won’t pick up their collateral before all the paperwork is signed and this process should be advised by a professional.
At Jeff Smith Towing we try to be as fair as we can when collecting collateral because we know it can disrupt people's daily life style. With that being said we are also very good at what we do and can find almost any vehicle. We have the latest technology for skip tracing and can find addresses, phone numbers, and places of business with the click of a button. After it is collected it’s typically brought to our storage facility near Baytown when it will be locked 24/7 behind a guarded gate. Jeff Smith is also a certified locksmith and can cut and program almost any key. If you need you collateral recovered in the Houston Area call us today, 713-855-0526