Car lenders in Missouri can repossess a car, try to sell it and then collect the difference between the sale price and remaining loan balance, according to Nolo. Lenders can repossess a car without a court order in Missouri, notes attorney Douglas B. Breyfogle.Know More
Before a car loan company takes a vehicle in repossession, it must notify the owner. Licensed repossessors cannot take a car without breaching the peace, which means someone can't forcibly take the vehicle or threaten someone before taking the vehicle, according to Breyfogle.
Lenders can keep the car or sell it at an auction. An owner can keep the car by paying the entire balance of the loan, bringing the loan current and getting the financing reinstated, purchasing the car at an auction, or filing for bankruptcy protection, notes Breyfogle. Lenders don't have to reinstate the loan after the borrower becomes current. If lenders auction the car, an owner can buy it back but still must pay the difference between the sale price and the loan balance. This difference is called the deficiency. If someone files for bankruptcy, collection and repossession procedures will stop until the court decides what to do with the vehicle.
In Missouri, owners have 21 days to cure the deficit of a loan before a repossession takes place and after the lender issues a Right to Cure letter, according to Midwest Lenders Services. License plates remain with the debtor once a vehicle is repossessed.Learn more in Debt Law
Pennsylvania law allows lenders to repossess property in which they have a security interest if the debtor falls behind in payments, according to the Pennsylvania Legal Aid Network. For lenders to take this action, there must be a written security agreement and it must be possible to peacefully repossess the property.Full Answer >
According to the Oklahoma law office of Mitchell and Hammond, if an individual in Oklahoma leases or purchases an item on credit and fails to make the agreed upon payments, creditors have the right to seek legal action for repossession of the items. Typically repossessions occur with motor vehicles, but creditors in Oklahoma have the legal right to repossess any purchased or leased item. It is possible for repossessions to occur at any time.Full Answer >
A statute called the Texas Business and Commerce Code Section 9.609 says a creditor can use self-help repossession but can only seize collateral if it can be done without a breach of the peace, according to Weber Law Firm, P.C. Getting a court order or filing a lawsuit are other options for creditors.Full Answer >
Chapter 7 is described as basic bankruptcy in that it permits the liquidation of all debts, according to Cornell University Law School. Chapter 13 allows individuals to enter a payment plan to pay off their debts over time.Full Answer >