When is repossession possible?

Repossession of debtor property is usually a debt collection practice of last resort employed by the creditor when the debtor defaults on the loan or credit card debt.  A repossession of personal and real property can result with secured debt and with unsecured debts. 

Unsecured Debt

Unsecured debt is debt that is not guaranteed by any type of collateral.  The creditor would be able to try to repossess that goods sold to the defaulting debtor if possible in order to sell them to recoup some measure of his loss.  This usually involves furniture or appliance type of repossessions or other types of goods that could possibly be resold to pay on the debt.  Sometimes an individual over his head in debt will return goods to a creditor especially if they are unused in order to avoid a creditor repossession action.

Secured Debt

Secured debt is a loan that is backed by collateral of some type.  If the debtor defaults on the loan payments the creditor is able to recoup his losses by asserting ownership right to the collateral property.  There is usually a security agreement allowing the credit to take possession on debtor default that is signed at the time the loan agreement is made.  Car loans and home mortgages are good examples of secured loans.  A creditor bank will take to title to a car or home upon debtor default and usually sell the vehicle or property to recoup some part the debt. 

Getting Legal Help

If you are being threatened with a creditor repossession action then contact a debt collection attorney as soon as possible to access experienced assistance that may save your property.  Debts can often be re-negotiated and often settled with the help and guidance of a debt collection attorney.