Auto Repossession In Chicago

If you take out a loan to buy a car, the creditor has the right to repossess the car if you do not make a payment or if you default on the loan. After repossessing your car, the creditor must send you a “Notice of Redemption,” which tells you whether the creditor will keep or sell your car. It also tells you that you have a right to buy the car back. Sometimes in Illinois, repossession can be against the law. If you believe that your car has been illegally repossessed – of it has been legally repossessed because you are struggling with overwhelming debt – speak at once with an experienced Chicago bankruptcy lawyer. Here are several of the ways repossession may be illegal:

– The repossession agent breached the peace. Creditors and their agents cannot use violence or threats and cannot break into a locked garage or destroy your personal property to take a car. However, the law also limits any effort on your part to avoid repossession. You can’t lock the car in a garage, hide it, or physically restrain a creditor’s representative from taking it.

– You were not in default. You may not be in default if the creditor previously accepted your late payments without objection. The creditor must give you fair warning that payments must be made on time before the car can be repossessed for late payment.

– The Notice of Redemption was insufficient. Repossession may be unlawful if the creditor fails to give you enough notice. For example, the creditor must give you at least 21 days to buy back or “redeem” your car after repossession.

Fortunately, you have options. You can file for Chapter 13 bankruptcy, automatically halting any seizure of your possessions. You might consider a Chapter 7 bankruptcy instead, although Chapter 7 is not usually for those who want to keep their possessions; it typically liquidates your assets to pay your debts. However, if you want to keep one item such as a car, an lawyer with repossession experience may be able to help you arrange it. If your car has been or is about to be repossessed, don’t wait to call. Let an experienced Chicago bankruptcy lawyer explain bankruptcy and help you determine if it’s the right option for you.