What happens after a repossession?
What happens after a repossession?
Even if your car is repossessed and later sold at auction, you might not be off the hook. If you car sold at auction for less than you owed on the loan, you must still pay the remaining balance to your lender. If you do not make those payments, your creditor can sue you in court.
Does repossession affect insurance?
While it’s true that the act of repossession does not affect your insurance company, it will devastate your credit score. Because many auto insurers consider an applicant’s credit score when setting their rates, having a bad credit score will mean higher insurance costs.
What if car was damaged during repossession?
Liability. When a car is repossessed by a lender, liability for the car and damages made to it transfers to the lender as well. So, if a repossession company damages the car in the course of repossessing it, then the company is legally responsible for the damages. This is because it is acting as a proxy of the lender.
What happens when your car gets repossessed in Louisiana?
As in most states, the lender will sell your car after taking it back. It must send you a Notice of Sale first, and a Notice of Disposition after the sale if it wants to hold you responsible for any deficiency balance, which would occur if the vehicle sells for less than what you owe on it.
What is a self help repossession?
From Wikipedia, the free encyclopedia. Repossession, colloquially repo, is a “self-help” type of action – mainly in the U.S. – in which the party having right of ownership of the property in question takes the property back from the party having right of possession without invoking court proceedings.
Is Louisiana a no repo state?
“Louisiana law permits repossession of motor vehicles upon default without further notice or judicial process.” In taking possession, a secured party may proceed without judicial process if this can be done without a breach of the peace or may proceed by other remedies available by law.
Is Louisiana a right to cure state?
The new Louisiana repossession law states that: The debtors must be sent a right to cure notice stating that:: “Louisiana repossession law permits the repossession of motor vehicles without judicial process.” The entire right to cure notice must be in at least 12 point type.
