One of the biggest fears that people have when they are deep in debt is having their home or car repossessed. Although it is legal for a creditor to repossess your vehicle, you do have rights that they need to respect during the process. Here is what you need to know about your rights during vehicle repossession.
No Threats of Force
One of the most important rights during a vehicle repossession is your right to safety. A creditor cannot use force to repossess your vehicle. Even the threat of force is illegal. They may use other means, but they cannot be violent toward you in the process. At the same time, you cannot be violent toward them. Doing so can quickly escalate a situation into a problem for both sides, and it is best to remain calm and out of harm’s way.
Notice of Repossession
Once your vehicle has been successfully repossessed, the creditor is responsible for notifying you of the repossession. This notice also gives you information on where the vehicle was taken and what you can do to legally recover it. In many cases, you have to catch up on loan payments before the car can be returned.
The Cobb Letter
In many cases, a creditor will accept late payments for vehicles. This violates the terms of the loan contract, but they do it anyway. If the creditor decides that it will no longer accept late or missed payments, then they have to warn you before it tries to repossess the vehicle. That warning is called a Cobb Letter, and it basically states that you have violated the contract too many times and the loan holder will not be lenient anymore. It’s a chance to address the problems before the creditor comes after the vehicle.
Vehicle Location
Repossession companies have to follow strict rules on how they take vehicles into their possession. For example, a repossessed vehicle can only be taken from a publicly accessible area. If it is locked in your garage, they cannot break in and take it. However, they are often permitted to take it from private property if the vehicle is out in the open.
Vehicle Occupants
Safety is the most important thing in a repossession case. If there is someone in the vehicle at the time of repossession, they cannot take it. That way, they are not running off with people trapped in vehicles while moving.
These laws specifically focus on children and pets as they cannot be responsible for themselves. However, an attempt to secure the vehicle for repossession may be made if adults are in the vehicle. While they cannot drive off with the vehicle if you are in it, some repossession agents may try to attach a boot or even their truck to the vehicle so that you cannot drive away either. If this is the case, it is safer and an overall better decision to surrender the vehicle to avoid danger and damage.
Prevent Vehicle Damage
Car repossession laws in Minnesota also stipulate that repossession agents cannot damage your vehicle. The goal of a repossession is to recover the vehicle and salvage as much value from it as possible. That means damaging it would work against those goals. More than that, it also means that agents cannot break into, or otherwise disable your vehicle in order to recover it.
Work With Bankruptcy Attorneys to Prevent Repossessions
Your vehicle is just one asset that can be repossessed, but bankruptcy can offer protection for your assets. Work with bankruptcy attorneys to protect your rights during vehicle repossessions and see what protections bankruptcy offers. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form for more information about car repossession laws in Minnesota.
