Vehicle Repossessions in Pennsylvania

The bankrupcy lawyers at David R. Black’s Bankruptcy Legal Group provide skilled guidance, explain your legal options and advise on the best way to deal with a vehicle repossession.

What is vehicle repossession?

Most people take out a loan to buy a car and the vehicle secures the loan. The lender has a lien on the car, and based on the terms of the loan agreement, may repossess the car if the borrower defaults or is late on car payments.

Five important things to know about vehicle repossessions

The loan agreement that you signed when you purchased the car outlines the creditor rights to repossession. It states whether the lender can come onto your property and repossess the car without notice. It states the details of how many payments can be defaulted before repossession of your car.

Under Pennsylvania law, the lender has the right to repossess your car as long as the process is peaceful.  You have fifteen days in Pennsylvania to redeem your car after repossession. Redemption usually involves paying the full amount owed on the car along with any missed back payments and repossession expenses.

If there is a deficiency in selling your car, and your loan agreement allows it, the lender can require that you make a deficiency payment. A deficiency is the amount you still owe on the car after repossession and sale, and the sale proceeds go to the lender.

The lender must notify you in advance about the auction to sell the repossessed vehicle and the vehicle must sell in a commercially reasonable manner, which means at fair market value.

What to do if your vehicle has been repossessed

If your car sells at public auction, you may be able to redeem the vehicle. Typically you pay the full amount owed, back payments, and repossession expenses (storage, auction expenses, and attorney fees).

If repossession violated the security agreement on the vehicle, you may be able to sue for damages or fight a deficiency judgment based on a breach of peace.

Filing bankruptcy sets an automatic stay in motion often preventing repossession. Depending on your equity in the car, it may be a Chapter 7 exempt asset or incorporated into a Chapter 13 repayment plan.

Contact David R. Black's Bankrupty Legal Group today

Call our bankruptcy law firm today at (866) 491-6275 --> (866)-491-6275 for a free consultation or contact us via our web form.We represent individuals throughout the Delaware and Chester County area.