It’s easy to get behind on your loan payments, and when you do, lenders may send agents to repossess property like automobiles. In other cases, the lender may sell your debt to a debt collector. Repo agents and debt collectors are known for going all-out to collect, sometimes even employing aggressive, illegal tactics to scare you. If you are the victim of repossession or debt collection action, there may be some steps you can take to resolve the situation and maintain control of your valuable property. Read on to find out more about what you can do to stop repossessions and debt collectors!
How to Stop a Repossession
Because cars are the most commonly repossessed items, we will focus on car loans for this blog post. You may be subject to a repossession action for some other type of property, and this information may or may not apply to your situation. If you’re not sure, the best thing to do is speak to a bankruptcy lawyer like the ones at Nahrgang & Associates in Collegeville, PA.
When it comes to auto loans, your lender has the right to repossess your car when you are in default; however, if you can pay off your outstanding balance (including any late fees) before the repossession takes place, you will be able to keep your vehicle. You should also know that repo agents have some legal restrictions about the circumstances under which they can take your vehicle.
For example, if the car is parked in a garage on your property, they are not allowed to enter the premises to remove it. Storing the vehicle on your property may buy you some time to pay your outstanding balance, but it is not a permanent solution, and your vehicle will still be subject to repossession any time it is parked in a public place.
How to Stop Debt Collectors
When you owe money on credit cards, auto loans, medical bills, student loans, mortgages, and other debts, the lender may sell that debt to a third party that is authorized to collect from you. Generally, debt collectors will try to contact you by phone and these calls can become annoying and obtrusive. Luckily, the Fair Debt Collection Practices Act was put into place in 1978 to protect debtors from aggressive collection actions.
Under this Act, debt collectors must abide by certain rules when attempting to get money from you. For example, they cannot contact you before 8 am or after 9 pm. If you tell them that certain times are not convenient for you, they will not be allowed to call at those times. You may also request that they only contact you by mail, or that they only communicate with you through your attorney. If a debt collector violates these rules, they make threats call repeatedly, lie about the amount you owe, or harass friends and family about your debt, you can report them to the Federal Trade Commission.
Get Representation from a Bankruptcy Attorney
Being in debt can make your life a nightmare, and harassment from repo agents and debt collectors doesn’t make things any easier. The information listed above is only a brief overview of what you can do to stop collection calls and repossessions. If debt collectors are making your life difficult, hiring an attorney can help. With legal representation, you can issue cease and desist letters or explore other options like debt relief and bankruptcy that can get debt collectors off your back.
Nahrgang & Associates represents clients as a bankruptcy lawyer in Delaware County, PA, so get in touch with us if you need legal advice anywhere in Southeast or Central Pennsylvania. Call (610) 489-3041 or visit our contact page and fill out the online form to speak with a top bankruptcy attorney about your situation.