Repossession And Your Rights
If you default on an automobile loan in Illinois – even if you simply fail to make a payment – the lender may act to repossess your vehicle. After a vehicle repossession in Illinois, the lender must provide you with a “Notice of Redemption” that indicates whether or not the lender intends to sell your vehicle and informs you of your right to buy back the vehicle. In the Chicago area, if your vehicle has been repossessed – or if repossession is imminent – arrange immediately to speak with an experienced Chicago bankruptcy lawyer. If your vehicle has been illegally repossessed, or if it was repossessed because you are struggling with massive personal debt, an experienced Chicago bankruptcy lawyer can help.
Under Illinois law, when creditors and their agents repossess a vehicle, they may not breach the peace; they may not use force, threats, intimidation, or violence; and they may not break into a locked garage or other locked storage facility. If the lender has accepted late payments from you in the past, or if you were not specifically informed that repossession would be the consequence of a late payment, speak with an lawyer at once; it’s possible that your rights have been violated. A lender must give you fair notice before repossessing your vehicle, and the lender must also provide a 21-day window for you to buy back the vehicle.
A Chapter 13 bankruptcy immediately stops any effort to repossess or seize your property. An lawyer can also explain a Chapter 7 bankruptcy, and you may qualify, but a Chapter 7 bankruptcy might mean liquidating your vehicle and other possessions to pay your creditors. A good bankruptcy lawyer will recommend the legal option that’s in your best long-term interests. If you need to keep your vehicle, in many cases a bankruptcy lawyer can help you do that. In the Chicago area, let an experienced Chicago bankruptcy lawyer explain your bankruptcy options and the alternatives to bankruptcy. If your vehicle is being repossessed, make the call immediately.