Vehicle Repossession in Arizona
Creditor Rights | AZ Bankruptcy | Stopping Repossession with Bankruptcy
by Max Gunderson
Getting a new car, truck, boat, or recreational vehicle is fun. There is an excitement that you feel as you have a new “toy” to play with. However, you need to remember when you decide to finance or lease a car, truck, or other vehicle that your creditor or lessor holds important rights on the vehicle until you’ve made the last loan payment or fully paid off your leasing obligation. These creditor rights are established by the contract that you signed when financing the vehicle and through Arizona state law.
It is very important that you make all of your payments and follow the lending agreement to the letter. If you don’t, there could be consequences, for example, if your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. In Arizona, creditors can do this legally without getting a court order or giving you any advanced warning. According to Arizona law, if you are in default of your lending agreement, your creditor can come and repossess your vehicle as long as they do not breach the peace – breaking in or taking it by force.
What exactly constitutes a “breach of the peace” depends on the facts of each case. In addition, your creditor may be able to sell your contract to a third party, called an assignee. The Arizona assignee may have the same rights and responsibilities as the original creditor or lessor. When repossessing your vehicle, your Arizona creditor can use self help or they can have a recovery agent do it for them.
Find out how filing for bankruptcy in Arizona can stop the repossession of your vehicle, motorcycle, or recreational vehicle. Once you file for chapter 7 bankruptcy or chapter 13 bankruptcy in Arizona, at “automatic stay” goes into place and will stop the threat of repossession. Visit an experienced Arizona bankruptcy lawyer or bankruptcy attorney to learn more about stopping a repossession through bankruptcy.
If you have questions about the implications of Filing Bankruptcy in Arizona and repossession of your vehicle please contact the Arizona Bankruptcy Lawyers at: The My AZ Lawyers, PLLC (480) 263-1699 in the Phoenix Metro Area or (520) 306-8729 in the Tucson Area for a free initial bankruptcy consultation to discuss your legal options in avoiding repossession and filing Bankruptcy in Arizona. With locations in Phoenix, Chandler, Tucson, and Glendale we are an Arizona Debt Relief Agency and help people file for chapter 13 bankruptcy or chapter 7 bankruptcy under the Bankruptcy Code. Don’t lose everything. Get a “Fresh Start” today, our Arizona bankruptcy lawyers, Arizona debt relief specialists, and Arizona bankruptcy attorneys can help.