In some cases, a loan may be secured or backed by personal property such as a vehicle, furniture, collections, or other valuable items. This means that in the event of a default on the loan, the creditor or lender may take possession of the personal property. The personal property is taken in lieu of the missed payments; this process of taking the property is known as “repossession.” This is similar to instances where a loan is backed by real property, such as a home.

Do I Need to Allow a “Repo Man” Into My House?

It is common for a creditor/lending agency to hire a “repossession” person to go to the borrower’s home and claim possession of the property. While this is a way for the lender to increase their chances of repossessing the property, the borrower is generally not legally obligated to let such persons into their home.

The only exception to this is when the repossession company comes with a sheriff, along with a court order, regarding the property. In such cases, the borrower must comply with the order and allow repossession of the personal property. In most cases, creditor will only go after highly valuable personal property such as a car or a valuable collection.

What If I Have Legal Issues Regarding Personal Property Repossession?

Personal property repossession must be done according to sound debt collection practices. The repo man can’t use force to accomplish the repossession, and they also can’t use abusive language or threats of violence to obtain the property. Generally speaking, they are not allowed to disturb the peace during the repossession process.

Repossession can often be avoided through alternative measures such as negotiating with a creditor to work out a different payment plan. These types of negotiations may require legal representation, especially if further court involvement is required. Also, repossession situations can be avoided in the first place by dealing with unsecured debt rather than secured loans.

Do I Need a Lawyer for Help with Personal Property Repossession Issues?

Personal property repossession and other debt-related issues can involve some complex legal issues. You may need to hire a finance attorney in your area if you need assistance with any repossession claims. Your attorney can inform you of your legal rights regarding your property, and can perform legal research to help with your case. Also, if you need to appear in court, your lawyer can provide representation throughout the process.