Are you worried about losing your car to repossession in Florida? One missed payment could trigger serious consequences, and lenders often move quickly. The sooner you take action, the more options you have to protect yourself and your finances from automobile repossession. Talking to a lawyer now can make all the difference in the outcome of your case. With legal guidance, you can take back control and make informed choices about your next steps.
What Is Automobile Repossession?
Automobile repossession happens when a lender takes back your car after you miss one or more loan payments. This is possible because an auto loan is a type of secured debt, which means the loan is tied to a specific piece of property. That property, known as collateral, is your car. If you fail to make your auto loan payments on time, your lender can take back the collateral (your vehicle) and sell it to recover what you owe them.
Car repossession laws in Florida give lenders broad authority to repossess vehicles if you fall behind on loan payments. Many loan contracts include a short grace period, but lenders have the legal right to move forward with a repo after a single missed payment. They are not required to warn you before sending a repossession agent. These agents can remove cars from your driveway or from public areas, though they cannot break into your property or threaten you.
It’s worth noting that a repossession does not remove your loan obligation. You will still owe any remaining balance after the car is repossessed and sold.
Signs You Could Be in Danger
In Florida, lenders can repo your car after just one missed payment. However, if you notice any of the following warning signs, you might have a chance to take action before the repossession process starts.
You might be at risk for automobile repossession if you:
- Miss one or more payment deadlines
- Start receiving repeated calls from your lender
- Get letters warning about default or past due payments
- Notice late fees being added to your account
- Have been told that you must bring your loan current right away
- Learn that your loan balance has been accelerated
- Notice repossession costs appearing on your monthly bills
Your Rights During Repossession
Florida law favors lenders in repo proceedings, but you still have clear vehicle repossession rights as a borrower. Repo agents must hold valid licenses and follow strict rules. They cannot break locks on your property, enter your garage, or use threats to force you to do anything. They must avoid creating disturbances when carrying out repossessions. If an agent violates these limits, you might have grounds to challenge the repossession.
You also have the right to keep your personal property. Under Florida repossession laws, creditors must inventory items found in the vehicle and store them for 45 days, giving you a chance to collect them. If your car is sold, the lender must provide clear and timely notice of the date and location of a public sale or details of a private sale. That sale must be conducted in a commercially reasonable manner. Your car should be sold for the fair market value. If the sale price is unfairly low, you can raise it as a defense against a deficiency lawsuit.
Steps to Protect Yourself
Repossession proceedings can move quickly, so you should take immediate steps to protect yourself if you know you’ve fallen behind on your auto loan payments. Start by contacting your lender directly to discuss your options. Some will offer short-term solutions, such as modified due dates or repayment plans. If you have the cash on hand, you can also pay the overdue balance plus late fees to restore your account and reinstate the loan. You could also explore the possibility of a voluntary repossession, which lets you control the timing of the repo and might reduce some of the associated fees. If the repo has already happened, you could still recover your car by redeeming it, which involves paying off the full loan balance and expenses before the vehicle is sold.
Can Bankruptcy Stop Repossession?
Possibly. Filing for bankruptcy is a serious decision, but it can be an effective way to prevent car repossession and address other debt issues at the same time. The moment you file, the court will issue an “automatic stay,” which immediately prohibits creditors from taking your car or continuing collection efforts.
In Chapter 13 bankruptcy, you set up a repayment plan that allows you to stretch out your past-due car payments over several years. That can give you the breathing room you need to keep the car and get current on your loan. In some cases, Chapter 13 also allows a “cramdown,” where you pay the current value of the vehicle instead of the full loan balance.
Chapter 7 bankruptcy works differently. It allows you to discharge your unsecured debts to free up money, which you can use to cover your car payments. However, you still need to stay current on your car loan if you want to keep the vehicle.
How Our Attorneys Can Help You
Loan Lawyers fights for people facing repossession, foreclosure, and debt collection in Florida. Our attorneys have taken hundreds of cases to trial and know how to hold banks and creditors accountable. When you come to us for help, we look at the full picture of your finances to find the ideal path forward. That might involve negotiating with lenders, suing for violations, and or using bankruptcy as a tool.
We never push you into a one-size-fits-all answer. With more than $100 million in debt and mortgage principal eliminated and thousands of homes saved, we know how to get results. Our repossession attorneys in Fort Lauderdale are here to provide clear answers and intelligent solutions tailored to your unique financial situation.
Contact Our Law Firm Today
People come to Loan Lawyers during some of the most challenging times in their lives, and we take that responsibility seriously. One client’s words show the level of professionalism you can expect from us:
“We highly recommend Loan Lawyers, and our experience with them has been excellent. They are very polite and always kept us up to date on every single detail of our case.” – Barbara B.
If you need auto loan default assistance in Florida, don’t hesitate to give us a call. Our team has eliminated more than $100 million in debt and mortgage principal for those we represent, and we’re here to give your case the attention it deserves. Contact us today to get started with your free consultation and learn more about what we can do for you.
