Frequently Asked Questions

What of the goods are sold for less money than I owe the creditor?

When the goods are resold, they often fail to bring a high enough price, and the debtor still owes money to the creditor after repossession. Generally, the debtor can still be sued for the amount remaining on the debt. In addition, reasonable attorney’s fees and cost of repossession (if the debtor agreed to pay them

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What happens after the goods are repossessed?

After repossession, goods are usually sold to satisfy the debt. The creditor must give the debtor written notice of the time and place of the sale. The debtor can then pay the amount owed, find a buyer to purchase it, or be present at the sale to bid. The goods must be sold at a

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Must the creditor go to court to repossess collateral?

That depends upon the laws of your state. Most states allow creditors to repossess collateral without going to Court. However, the creditor may not cause a breach of the peace in attempting repossession, such as breaking into a house or garage.

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Can I avoid repossession by making the payments I have missed?

It depends on the contract. Many contracts have an acceleration clause. This means that when the debtor misses on payment all future payments become due immediately. If your contract has an acceleration clause, you must pay all the money owed to avoid repossession. However, many creditors are willing to accept the past due payments and

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How do I re-establish credit after a bankruptcy case?

After completing a bankruptcy case it may be useful to obtain some credit. No law restricts the availability of credit so each lender may consider the bankruptcy filing, the credit history as shown on the credit report, and other indications of credit worthiness in deciding whether to make a new loan. Each lender is different

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