Legal Question in Real Estate Law in Pennsylvania

Re: Vehicle reposessed without warning

Often, cars are purchased with the aid of a bank who provides a loan. The loan is then secured by a lien on the title. That means that the owner's interest is always subject to that of the car loan company. The company has certain rights upon default of the loan agreement. The main right is to repossess and, ultimately, sell the vehicle. The owner has the right to buy the vehicle prior to sale by paying the balance owed.

Prior to a sale, the car may be given back under one of two scenarios. First, the owner can negotiate with the company to repay the delinquency and probably any costs of repossession. This option is completely under the control of the company who has no obligation to give the car back. The second option is a Chapter 13 bankruptcy. That involves the forced rectum of the car. Even under that scenario, there is no guarantee that the car will come back. Also, the owner must pay the arrears through what is known as a Chapter 13 plan. Alternately, the owner can pay the fair market value of the car, only, over the life of the plan which is 36 or 60 months.

I trust this has been helpful, but you must act quickly to avoid a sale and the permanent loss of the vehicle. Also, a leased vehicle is more problematic.

Feel free to call or e-mail for a free initial consult.