Q:

What are the laws governing repossession in Alabama?

A:

In Alabama, something purchased on credit or something offered as collateral can be repossessed, but there are several laws outlining how this can be done, states AlabamaLegalHelp. These laws revolve around a signed agreement between a purchaser and a creditor and provide limits and obligations for both.

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A creditor cannot repossess a house or land, nor can it enter a house without permission to repossess items inside, explains AlabamaLegalHelp. Repossessions usually involve automobiles, and these repossessions can only be performed without force, threats or trickery. A creditor does not need to request action from a court or provide prior notification of a repossession. Once an automobile is repossessed, a creditor must notify the debtor of his right to get the car back, but this often requires payment of the full balance owed. Filing bankruptcy does not give the debtor the right to get the automobile back.

After a car is repossessed in Alabama, the creditor has the right to file suit for any balance still owed, says Nolo. The creditor may sell the car at auction and if the amount received is less than the amount owed on the loan plus any costs incurred, the debtor is still responsible for the difference.

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