Car Repossession Laws in Illinois
Remedies for defaults on secured auto loans
Is a creditor threatening to repossess your car? Are you facing the loss of your most valuable possession, and you don't know what to do? The Chicago bankruptcy lawyers at DebtStoppers can help you out. Repossession is scary, but it is not inevitable. Let us help you do whatever it takes to hold onto your car.
Protecting your car from repossession in Chicago
When owners of purchased items can no longer make payments on them, Illinois repossession law allows the lender to take possession of the items. Since a car is a significant purchase for most people, they usually choose to finance it with a loan, which they pay in monthly installments. The car buyer agrees that the vehicle will serve as collateral that the creditor can repossess if the buyer defaults on payments. When the buyer defaults, the creditor has the right under Illinois repo law to take possession of the car, as long as it is done in a way that does not breach the peace (meaning, the creditor does not take the vehicle by force or over the buyer's in-person objections). Of course, you're limited by law in ways you can resist repossession. You can't keep the car in a locked garage, move it in an effort to conceal it, or physically restrain a repo agent from taking it.
Don't suffer the humiliation of repossession
Fortunately, it is not the only possible outcome. If you are unable to make payments and believe you may be at risk of having your car or other belongings repossessed, you can file for Chapter 13 bankruptcy, which automatically halts any efforts by creditors to seize your possessions. Our Chicago repossession attorneys can explain the details of filing for bankruptcy. When you file for Chapter 13 bankruptcy, you and your attorney can restructure your payment plan in a way that allows you to make the payments and keep your cherished items.
Some people might want to consider filing for Chapter 7 bankruptcy instead. Chapter 7 is not for those who want to keep all of their possessions, because it liquidates some of your assets to pay off your debts. However, if you just have one large purchase that you want to keep, such as your car, you may be able to work out a way to redeem its current value or reaffirm the loan.
Contact our Chicago law firm to find out more about stopping repossession
You don't have to sit back and watch creditors take away your car or other possessions. When the creditors are knocking at your door, contact our knowledgeable attorneys at DebtStoppers to find out all of your options. Just call us at 312-913-0630 or fill out our simple online form to set up a free consultation. We've helped countess people avoid repossession, and we can help you.