Repossession of your car, motorcycle, boat, RV, etc., or other personal property bought with a loan is a real threat in Florida if you fall behind on loan payments.
If you are at risk of missing payments on a secured loan — one backed by property that may be seized — you need to understand the repossession process in Florida and how to avoid and stop a repossession.
If repossession of your property has begun, a Florida car repossession lawyer can use the protections of Florida repossession laws on your behalf.
Contact the Loan Lawyers law firm in Fort Lauderdale, FL, for a free initial consultation about how to stop a repossession and take follow-up action to save your property today.
Understanding the Repossession Process Under Florida Law
Lenders in Florida must follow specific procedures to legally seize a car or other personal property under Florida repossession laws. A lender intent on repossessing a motor vehicle or other secured property:
- May take possession without prior notice if you have defaulted on your loan (i.e., missed one or more payments). A borrower who falls behind by as little as 30 days may be declared to be in default. A lender or their agent may not use violence or threats of violence to repossess property.
- Must provide written notice of their intention to sell the vehicle at least 10 days before the sale, including date, time, place, and the amount due on the loan. The borrower has the right to redeem the loan and reclaim the vehicle by paying the full loan balance, any late fees, and any expenses, such as towing and storage charges.
- Must sell a repossessed vehicle in a “commercially reasonable manner,” meaning not for significantly below market value. If the sale generates more money than the borrower owes, the lender must return the excess to the borrower within 30 days after they sell the car. If the sale of the car doesn’t cover the loan amount, the borrower may still be responsible for the remaining “deficiency balance.”
The agent who repossesses a vehicle when the borrower is behind on car loan payments must inventory all personal belongings found in it. Within five business days, they must notify the owner and give them “a reasonable opportunity” to claim the property without additional cost.
3 Steps to Avoid Repossession
Want to know how to avoid repossession? Here are three things you should do:
Gather All Relevant Documents and Files
Collect all your loan documents, including records of payments made and past-due payments. Gather files that show your income and other outstanding debts. This will prepare you to discuss your situation with your lender.
Contact Your Lender Immediately
Advise your lender of your financial situation as soon as possible, preferably before you fall behind on payments. In most cases, your lender will work with you to modify your loan and/or develop a plan for you to catch up on missed payments. If default is unavoidable, you may surrender the car through a voluntary repossession in exchange for a reduction in the deficiency balance.
Talk To a Lawyer About Filing for Bankruptcy
In a Florida bankruptcy, a primary motor vehicle essential for work, errands, and everyday life is typically exempted from property that can be seized and sold to satisfy your debts. Bankruptcy is just one option for obtaining debt relief, but in some cases, it is the most effective way to get a fresh start. A bankruptcy attorney can explain more if you are behind on your car payments or other loan payments.
To Learn More, Contact Our Florida Repossession Lawyers
If you are at risk of falling behind or defaulting on your car loan or other type of loan, you should reach out for help before your lender begins the repossession process. Loan Lawyers in Fort Lauderdale is a total debt solution law firm with a proven track record of helping clients regain financial stability and peace of mind.
Call us today at (954) 523-HELP (4357) in Fort Lauderdale or reach out online for a free review of your case with a Florida car repossession lawyer.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
