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Stopping Repossession With Bankruptcy

There are alternatives to repossession. If you are unable to make payments on your car or another secured loan, you are likely facing repossession. Or maybe you are in the middle of the repossession process. Some clients need to obtain lower payments, and others want to give up the property without being charged more on it.

Whatever your situation, you need protection. Shelbyville and Frankfort repossession attorney John Christopher Robinson and our attorneys at Robinson Salyers, PLLC, provide bankruptcy and debt relief counseling to people throughout central Kentucky.

Repossession is a legal process that allows a creditor to take back an asset, typically a vehicle, from the borrower due to a default on the loan agreement. It is often the last resort for creditors when a borrower fails to make the agreed-upon payments.

The Robinson Salyers, PLLC, team has extensive experience helping Kentucky residents deal with repossession matters. We also have a deep understanding of the laws that govern repossession activities.

What Are The Repossession Laws In Kentucky?

State repossession laws strive to balance the rights of creditors and borrowers alike. Under state law, a creditor may lawfully repossess a vehicle without a court order in some situations. Here are more facts about repossession in Kentucky.

  • Permitted: Repossessing vehicles and other items on public property
  • Permitted: Entering private property to repossess the property unless it would disturb the peace
  • Permitted: Repossessing without a court order if the property is not in a locked or secured area
  • Not permitted: Committing a breach of the peace, which includes using force or causing a disturbance
  • Not permitted: Entering a locked or secured private space without a court order in hand
  • Not permitted: Charging interest and fees, other than storage fees, after repossession

The law does not specify a set number of missed payments before repossession can occur – that information is usually outlined in the loan or purchase contract.

However, once a borrower defaults, the lender may initiate the repossession process, usually by contracting with a local repossession agency. Kentucky does not require lenders to notify borrowers before repossessing a vehicle. Many are unaware of this unfortunate fact until their property is gone.

After repossession, the law provides a 20-day window for the borrower to redeem the item by paying the outstanding balance, including any additional fees due to the repossession. If the property is sold for less than the amount owed, the borrower may still be responsible for the deficiency.

John Robinson will help you decide what options are best for you. There are effective ways to deal with repossession, such as:

  • Chapter 13 bankruptcy: This type of plan can help you avoid repossession by reducing your monthly payments or restructuring your debt.
  • Chapter 7 bankruptcy: While this option might not save you from repossession, it could help you avoid deficiency balances and penalties. Chapter 7 stops repossession so that you can give up the property without further cost. If the property is already repossessed, you could have the debt discharged through Chapter 7.

For any situation involving repossession, consult with a reputable and knowledgeable bankruptcy lawyer. Our attorneys have the experience, determination and success rate necessary to help you with your financial distress. We can help you get a fresh start.

It may be possible to reverse the repossession process. In such cases, we help clients file for bankruptcy quickly, before their property is sold. Then, we can track down the repossession agencies to stop them from selling your property. The key is to contact us as soon as possible and to act quickly.

Schedule A Complimentary Telephone Consultation To Stop Repossession

When facing repossession, turn to Robinson Salyers, PLLC. To schedule a free initial telephone consultation, call one of our Kentucky offices: Shelbyville at 502-220-4439 or Frankfort at 502-257-5417. You can also contact us online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.