Has Your Car Been Repossessed or Are You Defending a Deficiency Lawsuit?

Few things can be as depressing as having your car repossessed.  At Striffler Law we can help.  It is possible to get your car back if you act fast.

If a lawsuit has been filed against you - you need to act fast.  In Massachusetts, you only have 20 days to file an answer or a judgment may be entered against you.

Make sure to save all documents you receive relating to the car and the repossession and if you had documents about the purchase of the car in the glove compartment, make sure to retrieve them.

Your Rights Regarding Car Repossession

• Before your car is repossessed, the bank must provide notice entitled “Rights of Defaulting Buyer under the Massachusetts Motor Vehicle Installment Sales Act.”  You have 21 days after the noticed is mailed to you (not when you receive it) to cure the default on your auto loan before the bank can repossess your car.

• After your car is repossessed the bank must provide notice entitled "Notice of Plan to Sell Property."

• If the bank takes possession of your car, you may get it back by paying within 20 days of the repossession (i) the full amount of your loan plus (ii) any reasonable expenses incurred by the bank.

• If you had personal possessions in the car when it was repossessed, you have the right to get those items back free of charge.  The repossession company cannot charge you a fee for the return of your possessions.  This is a violation of the Fair Debt Collection Practices Act (FDCPA) and is an unfair an decptive act under Massachusetts General Law, Chapter 93A ("the $25.00 administrative fee charged by the [repossession company] and paid by the plaintiffs for the return of personal property of the plaintiffs located in the repossessed vehicle . . . constitutes an unfair and deceptive act or practice.")

• If you do not recover your car after repossession, the car will ordinarily be sold, and the lender may come after you for the difference between what was received from selling the car and what you owe on the contract.  This could result in you owing thousands of dollars to the lender.  That is why it is important to obtain a lawyer to discuss your rights and options.

I am being sued on a deficiency balance. What should I do?

If you have already been sued after repossession, do not ignore the lawsuit! Seek out a consumer attorney immediately, well before the 20 day deadline to answer the complaint passes, or you might lose your legal rights.

Don't assume you have no defenses, because many lenders have sent out a defective pre and post-repossession notices and can’t collect any money from you.

Give us a call to determine if your pre or post-repossession notices were defective, or if you have other defenses.

Chapter 13 Bankruptcy

Filing for Chapter 13 Bankruptcy protection is a powerful tool if your car has been repossessed and you do not have the money to pay the bank or to eliminate a deficiency balance.

If your vehicle was repossessed and has not yet been sold, you may be entitled to get your car back.  Once you file for Chapter 13 bankruptcy protection your lender must return the vehicle to you - immediately!

As part of your Chapter 13 reorganization plan, you may also be able to reduce the interest rate and/or "cram down" to reduce the balance of your loan to the value of the vehicle and take up to 5-years to pay off the new balance regardless of how much you owe on the loan.

In Massachusetts, many vehicle repossessions are performed unlawfully.  Banks and repo companys frequently break the law before, after, and during the repossession process. Massachusetts has powerful laws that protect consumers if their rights have been violated.

Help is just a phone call away.  Feel free to contact me for a free telephone consultation at (617) 290-1573.