Boca Raton Bankruptcy Lawyers

Repossession in Florida

When a person buys a car, truck, or other vehicle on credit, the creditor retains some very important rights concerning the vehicle until the last payment is received. This is very similar to the status of debtors and creditors in foreclosure situations.

The rights of the debtor and creditor are established by the loan contract as well as Florida’s state laws. These provisions generally favor the creditor and leave the debtor very little wiggle room. The main right for the creditor is the right to repossess, or take back, a vehicle if the contract for the loan is violated in some way. If payments are not made in a timely manner, the creditor has the right to repossess the vehicle without either going to court or without warning the debtor in advance.

Florida, however, does place restrictions on how a creditor may repossess a vehicle and resell it to reduce or eliminate the debt on it. For example, which a creditor may seize a vehicle, the creditor may not damage personal property or make threats against the debtor.

The creditor does have the right to repossess a vehicle as soon as a default on a loan has occurred. The creditor can take the car at any hour of the day or night without giving the debtor prior notice. Once the vehicle has been repossessed, a creditor can keep or re-sell the vehicle. The debtor, in this case, does have the right to demand that the car be re-sold rather than kept. This is beneficial to the debtor particularly the car’s value is higher than the amount left on the loan.

Another restriction on creditors is that they are not allowed to keep or dispose of any personal property left in the vehicle. “Personal property” does not include improvements made to the car such as the addition of a luggage rack or an upgrade to the car’s sound system. If a creditor can’t account for valuable articles left in the car, the debtor may be entitled to compensation.

If your car has been repossessed or you’re considering filing for bankruptcy, please contact the Boca Raton bankruptcy lawyers of Klein Attorneys at 561-353-2800 to discuss your case and to determine your legal options.