When you finance a car with an auto loan, the lender holds the title and you make monthly car payments towards the loan amount. If you miss or stop making timely payments based on your loan terms, the lender has the legal right to take possession of the vehicle.
When you finance a car with an auto loan, the lender holds the title and you make monthly car payments towards the loan amount. If you miss or stop making timely payments based on your loan terms, the lender has the legal right to take possession of the vehicle.
Having a solid understanding of the legalities around car repossession in Florida can help you avoid potential issues and know your options if your lender takes back your vehicle.
When you finance a car with an auto loan, the lender holds the title and you make monthly car payments towards the loan amount. If you miss or stop making timely payments based on your loan terms, the lender has the legal right to take possession of the vehicle.
Here is a general overview of what happens during the repossession process:
If you miss a payment, the lender will send a written notice that you have defaulted on the auto loan. The notice provides information on the amount owed and a deadline to become current on the loan.
At this point, you may have the option to voluntarily surrender the vehicle to the lender if you are unable to make the payments. This can save you money compared to forced repossession.
If the car loan debt remains unpaid, the lender can issue a repossession order. This authorizes a repossession agent to take possession of the vehicle.
The repossession company will attempt to locate and take possession of the car. The vehicle can be taken from any public property without notice.
Once repossessed, the lender will sell the car to try to recoup the unpaid loan balance. This is usually done through a private sale or public auction.
If the sale proceeds do not cover the full loan balance, the remaining amount is called the “deficiency balance.” The lender can pursue legal action to collect this amount.
When a vehicle is sold after repossession, there is often a remaining deficiency balance if the sale proceeds do not cover the full loan amount owed.
In Florida, creditors have a limited timeframe to pursue legal action to collect a deficiency balance:
Staying aware of these crucial deadlines can help protect your rights after repossession in Florida. If a lender fails to send the required notices or delays taking action, they may lose the ability to pursue you for the deficiency amount later on.
If your vehicle is at risk of repossession or has already been taken, it’s important to understand your legal rights under Florida law:
Being aware of your legal rights can help ensure fair treatment if your vehicle is repossessed in Florida.
If your car has been repossessed or you want to prevent it from being taken, here are some steps you can take:
Contact your lender immediately and find out the exact past-due amount needed to bring your loan current. You may be able to reinstate the loan by paying the missed payments, late fees, and repossession costs.
If you can’t pay the full deficiency amount, negotiate with the lender to try to settle for a lesser amount that is affordable for your budget. Get any agreement for reduced payment in writing.
You may be able to arrange to voluntarily surrender the vehicle yourself to save on repossession fees if you know you can no longer make the payments.
See if you qualify to refinance the auto loan for lower payments that you can manage more easily. Use the proceeds to pay off the defaulted loan and get your car back.
For some people overwhelmed with debt, filing bankruptcy may help eliminate the deficiency balance entirely or create time to catch up on payments. Consult with a bankruptcy attorney to explore whether this option could help you get your car back.
Having your vehicle repossessed can significantly hurt your credit standing. Here’s how it may impact your credit reports and scores:
Understanding the lasting impact on your credit empowers you to start taking steps to rebuild and recover after a repossession.
Negative information, including a past repossession, will automatically drop off your credit report after 7 years from the date of your first missed payment leading up to the repossession. However, the lender may still legally pursue collection of the remaining loan deficiency balance for up to 5 years from the repossession date under Florida’s statute of limitations.
In Florida, lenders have 5 years from the date of repossession to sue borrowers in civil court to collect any deficiency remaining after the sale of a repossessed vehicle. This 5-year timeframe is known as the statute of limitations. Creditors lose the right to sue for deficiencies after this period expires.
No. In Florida, a repossession agent is not legally allowed to engage in a breach of peace while repossessing a vehicle. This includes activities like moving another person’s property, threatening force, or causing property damage. If you believe a repossession breach of peace occurred, consult an attorney about your options.
Yes, Florida does have a right to cure law for auto loans. Within 45 days after repossessing your vehicle, the lender must send a “Notice of Right to Redeem” that gives you a chance to pay the deficiency balance plus fees to get the vehicle back before the title transfers. This notice provides an opportunity to “cure” the default.
If you are facing auto repossession or your vehicle has already been taken in Florida, understand that you still have rights. The skilled attorneys at LSS Law are familiar with Florida repossession laws and can advise you on the best steps to get rid of our debt through bankruptcy while recommending helpful tips for dealing with unfair treatment by lenders or collectors.
We know this can be an overwhelming situation. Our legal team will treat you with compassion and help you explore all of your options. Contact us for a free consultation (for Chapter 7 and 13) so we can discuss your unique situation. With the right legal guidance, we can help put you back in the driver’s seat.
Filling out these forms requires a thorough understanding of your current financial affairs. You'll need.
Now, let's address the question at hand: how long does Chapter 7 take in Florida? Typically, the Chapter.
Chapter 7 Bankruptcy, often referred to as straight or liquidation bankruptcy, is a legal process that.
Bankruptcy is a legal procedure that allows individuals or businesses struggling with debt to seek relief.
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