Boston Bankruptcy Lawyer

Car Repossession

Any bank is able to repossess a car when the person who bought the car fails to make payments on the loan. Most lenders are willing to work with a person to a degree but at a certain point, repossession becomes the option that the bank realizes is its best option.

Massachusetts has rules that outline how and when a bank may repossess a car. The bank must follow the rules or it is not holding up to its end of the deal.

In Massachusetts, the law says that if a borrower falls behind on car payments, the lender cannot just take the car away. If, however, the borrower is more than 30 days past due, the lender can decide to repossess the car. This can also happen if the borrower fails to keep the car insured.

Once the borrower is past 30 days overdue, the lender may repossess the car. First, the lender must send the borrower a notice called the “Rights of Defaulting Buyer under the Massachusetts Motor Vehicle Installment Sales Act.” This notice gives the borrower three weeks or 21 days to cure the default. If the borrower does not pay up within the 3 week period, the lender can take the car.

After the car has been repossessed, the lender must notify the borrower of the intent to sell the car. This notice gives the original owner 20 days to redeem the vehicle before the car can be re-sold to cover the car’s debts.

Contact a Boston Bankruptcy Lawyer

If you are in a dire financial situation and feel that bankruptcy is the only solution and would like more information on filing for bankruptcy, contact the Boston bankruptcy lawyer of Joshua Spirn & Associates at 1-800-975-5346.