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.Know More
A license is not required in Texas to conduct repossessions, says Allmand Law. Texas law specifies that a vehicle may be repossessed even if payments are only a few days late. The creditor is not required to go to court or give any advance notice. The repossession can occur on a person's property as long as the property is not damaged or destroyed.
A definition of breaching the peace is not included in the statute so the courts have tried to forge a workable definition, relying on previous cases from other states, notes Weber Law Firm, P.C. Conduct that may incite public turbulence or lead to a loss of order and tranquility is one such example. Noting that violence or a disturbance must be reasonably likely and not just a remote possibility, a repossession attempt must be stopped if it is verbally or otherwise contested, and there is no breach when a vehicle is repossessed on a public street and the debtor is in the house.Learn more about 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 >
Vehicles in California can be repossessed after a default in the contract of just one day, including a missed payment or a lapse in car insurance, according to attorney Jay S. Fleischman. Car finance companies and a registered repossession company can take away a vehicle.Full Answer >
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.Full Answer >
Debt collection laws vary by state, according to Nolo. Some states, such as Virginia, Maryland, Georgia and Iowa, have fair debt collection laws, while others do not. Regardless of the state laws, all third-party collectors are controlled by the Fair Debt Collection Practices Act, or FDCPA.Full Answer >