Arkansas Repossession Lawyers
Are you worried about losing your vehicle to repossession in Arkansas? Well, fear not because you’ve come to the right place. At WH Law, our Arkansas repossession lawyers understand the struggles of the working class and are here to help you and challenge those big-shot authorities.
Don’t let yourself be another victim of a repossessed vehicle. Contact WH Law today and let us help you avoid repossession and keep your wheels. You deserve to be treated like an actual human, not just another number on a case file.
The Lowdown on Repossession
Let’s cut to the chase: repossession ain’t pretty. It’s the process where a lender can take back the property you used as collateral if you stop making payments, whether it’s your home or your vehicle.
Now, before they can just snatch up your wheels, they gotta give you a warning or two. It’s all legally required, but the truth is, it can be a downright messy and confusing process. It can happen without court involvement and sometimes, quicker than a June bug on a summer night.
This is why you need a seasoned Arkansas repossession attorney by your side, someone who knows the ins and outs, someone who won’t back down until you get the fair treatment you deserve. We understand this ain’t a game, it’s your livelihood on the line.
Why does a Car get Repossessed?
Let’s talk about why a car might get repossessed. The most common reason for repossessions? Late payments. Here in Arkansas, we’ve adopted the Uniform Commercial Code. That means the banks have the right to snatch your car back without even stepping foot in a courtroom if you’ve fallen behind on your payments.
Sounds harsh, right? Well, there’s a silver lining: the creditor can only repossess your vehicle without breaching the peace. In other words, they can’t just kick down your door or stir up a ruckus to take your car back. This here is Arkansas repossession law, and it’s part of the repossession process.
Lower Your Car Payments
Alright, let’s talk about a potential lifesaver: Chapter 13 bankruptcy. Now, before y’all start getting spooked, it’s not as scary as it sounds. It’s a legal route that lets you create a payment plan over 3 to 5 years, giving you a shot at keeping your vehicle.
Say, for instance, you have an auto loan agreement with an outstanding balance of $10,000, but the car’s current market value is only $6,000. With a Chapter 13 bankruptcy, you can propose to pay the lender the car’s value instead of the outstanding balance. This is what we call a “cramdown” — you’re cramming down the loan balance to the car’s value.
But don’t go thinking this is a walk in the park, folks. The process can be complicated, and an Arkansas repossession attorney could be your best bet to guide you through it. We know the ropes, and we’ll be there every step of the way to help you lower your car payment and keep that car of yours right where it belongs — with you.
What Happens When a Car is Repossessed?
When it comes to car repossession, Arkansas law has a simple process in place. After your past due payments have piled up, the creditor can swoop in and take your ride. Once they’ve got it, they can sell it at a public or private sale in Arkansas.
Here’s the thing, though: most states, including Arkansas, give you a fighting chance to get your car back after repossession. You’ve got a short window of 10 days to redeem your car and pay the full amount left on your car note, plus any specified costs and interest.
Say you had a $20,000 note on your car, and you’d already paid $5,000. To redeem your ride, you’d need to cough up the remaining $15,000, plus any costs and interest. It ain’t an easy ride, but knowing the repossession laws is the first step in fighting back.
Do I Still Owe Money After a Repossession
The answer is most likely, “Yes.” In Arkansas, when a repossession company gets ahold of your car and the bank sells it, they gotta do so in a “commercially reasonable manner.” What does that mean? Say your car’s worth $20,000. If the bank sells it for $1,000, that’s just not right, and not commercially reasonable. If your bank sells your personal property, meaning your car, in a commercially reasonable manner but doesn’t recover all the money you owe on that car loan, they can come after you for a deficiency judgment.
Let’s say you owe $15,000 on your car note, your vehicle gets repossessed, and it sells for $12,000. Those Arkansas repossession agents can come after you for the remaining $3,000 plus the repossession fees and interest. It can also include other costs like storage fees. So, it ain’t just about losing your ride, it’s about what happens to your wallet afterward.
Stop Deficiency Judgment
Here’s the deal, when you’ve got a vehicle in your possession and you owe some money on it, that there is a secured debt. Now, if the cash stops flowing and you stop making those payments, the creditor can repossess your vehicle, and that secured debt turns into unsecured debt. This is the nitty-gritty of repossession laws.
Many folks start worrying about their credit report after a vehicle repossession or bankruptcy, but hold your horses. More often than not, your credit might actually improve after filing for bankruptcy, contrary to popular belief.
You should know most folks don’t have to pay back unsecured debt in bankruptcy. So, if they’re coming after you for a deficiency balance on your repossessed car, you might not have to pay a dime. It’s just another way we can help turn a negative into a positive for you.
So, breathe easy, folks. WH Law is here to make sure you navigate through these repossession laws, keep as much money in your pocket as possible, and get your credit back on track.
What Happens if the Repo Man Can’t Find My Car?
The repossession process can pop up at any time and just about any place, be it your driveway, your workplace parking lot, or even while you’re out shopping.
Some folks get a wild hair and try to hide their car from the repo agent, maybe keep it locked up in a closed garage, stash it at a buddy’s house, or even take off the license plate. But let me tell you, these repo companies, they’ve seen it all and they’re not going to throw in the towel that easy.
If your car stays hidden too long, the creditors might just haul you into court and get a judge to tell you to cough up the vehicle. And don’t forget, you could be on the hook for the repossession costs, which can start piling up the longer that car is hidden. So it’s best to play straight, y’all.
How to Stop Your Car From Being Repossessed
We’ve got five ways to help you avoid repossession here in Arkansas:
- Refinance your auto loan
- Reinstate your loan
- Sell your car yourself
- Voluntarily surrender your car,
- File for bankruptcy.
Refinancing might be tough, with missed payments muddying your credit report, but you might land a better interest rate. Reinstating your loan involves catching up on late payments, but if making payments has been tough, this route could be tricky.
Selling your own car can sidestep repossession and might just wipe out the remaining balance without leaving you with a deficiency. Surrendering your car voluntarily can halt repossession and might trim down the costs. And finally, bankruptcy is nobody’s first choice, but it can stop repossession in its tracks.
Remember, these options can help you dodge repossession and offer potential solutions if you’re wrestling with payments. Ain’t nothing easy about this, but together, we can navigate these rough waters. Let’s help you keep your ride, y’all!
Can I Get My Car Back if it Has Been Repossessed?
If your car has been repossessed, you gotta move fast. After snatching your wheels, the creditor is obliged to send a letter detailing how many days you have to pay off what’s owed to redeem your car. But, if they’re not trying to collect a deficiency balance, they can sell your ride without giving you notice.
Don’t let this discourage you, though, starting an attorney-client relationship with us can boost your chances of getting your wheels back. Filing for Chapter 13 bankruptcy can be a lifesaver, too. It not only helps you dodge repossession but also ensures your vehicle won’t be auctioned.
And remember, the lender’s legally required to return your vehicle as quickly as they can. It’s easier to stop the repo man from taking your ride than to retrieve it from them.
Listen here, good folks of Arkansas. If you’re stuck in a pickle with repossession, there’s no need to go it alone. Here at WH Law, we’re well-versed in both Chapter 7 and Chapter 13 bankruptcy, and we’re ready to roll up our sleeves and stand by your side. Don’t be a stranger, y’all. Give us a holler for a free consultation. Let’s face this repossession head-on and get you back behind the wheel.