When it comes to debt and repossessions things tend to get hazy, confusing, and frustrating. Skrupa Law Office, LLC in Omaha and Lincoln wants to minimize that frustration, so our attorneys have compiled a list of common terms used during the repossession process. To learn more, read our in-depth blog about repossession below.
Repossession Options
Bankruptcy is a chance to get rid of your debts and start fresh; it is usually a last resort and it can stay on your credit for up to ten years. However, if you file a Chapter 13 before or shortly after your property (aka collateral) is repossessed, you may be able to get the property back and set up a repayment plan to pay the debt and keep the property.
Chapter 7 Bankruptcy will not likely help you get property back that has already been repossessed, but if you have a repossession on your credit and owe a deficiency (amount you still owe the creditor after the resale of the property), Chapter 7 can discharge this debt. This is a great option if do not want to be stuck with paying for property you no longer have and enjoy.
The other option to repossession is debt settlement or negotiation. This is a better way to save part of your credit and you can finish the program in only a few years. Here are some terms you will need to know during the repossession process.
Repossession Terms
- Adjuster- is a term used for a repossessor.
- Collector- is a person that works for the creditor and oversees the repossession.
- Collateral- are assets that are promised to a creditor if a debt cannot be paid.
- Condition report- is the condition of the inside and outside of the property.
- Redemption- is when a person buys back the repossessed property by paying off the loan.
- Replevin- a court order to gain control over the collateral or property.
- Skip- a person who skipped out on their loan.
- Skip tracer- is a person who locates the person who skipped out on the loan and the collateral.
- Liquidation- is the sale of the collateral or property owned by the bank.
- Repo- a shortened term for repossession.
- Involuntary repossession – This is a situation when your car is taken without your consent. It would be better to voluntarily give up your property before they take it.
- Voluntary repossession- This means you give up your property willingly, this situation will leave you with fewer fees in the end.
- Deficiency balance- This is the left over balance after the property is auctioned off.
Example: If you owe $10,000 and the car is auctioned for $6,000 then the deficiency balance is $4,000. The deficiency balance is what you still owe the creditor.
Contact Skrupa Law at (402) 571-299 (Omaha) or (402) 464-3311 (Lincoln) Today!
Our bankruptcy expert lawyers at Skrupa Law hope this list aids you in understanding your situation a little better. If you have any questions concerning repossession or bankruptcy and what your options are, contact our Omaha office at (402) 512-6094 or in Lincoln at (402) 464-3311. We want to help you keep your possessions and we want to ease the angst involved.