Understanding Repossession

What is Repossession?

Within the scope of debt and collections law, the legal instrument that allows the owner of a debt in default to reclaim the item in arrears is classified as Repossession. The act of Repossession can occur in a variety of methods, and while a typical circumstance of Repossession consists of forcible Repossession – this is not always the case.

Due to the fact that legislature with regard to Repossession laws vary on both domestic and international levels, there rarely exists a uniform parameter to which Repossession Agencies – or individuals in danger of Repossession – can rely.

Repossession Legality

One hand, certain locations do not require Repossession Agents to convey any notice or warning of a Repossession effort; ‘no-notice Repossessions’ do not preclude the owner of a debt or lien to negotiate with an individual in debt.

On the other hand, certain locations require that Repossession Agents communicate with a debtor – or debtors – in order to avoid Repossession effort(s); this can include an extension of a lien, or a bulk payment toward any or all debt incurred by the item in arrears.

Repossession laws typically state that items in arrears cannot be repossessed in the event that they are not present on the property belonging to the debtor

Voluntary Repossession

Certain locations offer the option of a voluntary Repossession, in which the debtor – or debtors – willingly volunteer the item in arrears or product upon which there exists a lien in default; by doing so, the individual in debt may have the opportunity to forego additional expenses that may be incurred as a result of a Repossession effort.

NEXT: Easy To Follow Debt Solutions