Chapter 7 Bankruptcy

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Chapter 7 Bankruptcy

Refers to the right a vehicle creditor or lessor has to take a car away from a person until they’ve paid off their auto debt obligation. These rights vary by state and can be found in the contract signed when the borrower took on the car lease or loan. In most states, a creditor can repossess a car as soon as the borrower fails to make a payment on time. This can happen anytime without notice and can also be done on the borrower’s property. However, most states require a creditor to refrain from using physical force when seizing a vehicle.


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