Repossession

Repossession refers to the action that occurs when a lender takes back an item that was used as collateral for a loan. This is most commonly used with automobile lenders when the consumer is behind on the agreed upon payments. Most lenders outsource the actual physical repossession of the vehicle to a repo agent who finds the car (most likely at the consumer’s home or place of business) and takes it back by either using a tow truck or by obtaining the keys voluntarily from the owner. In order to reclaim the vehicle, the consumer must, at the very least, come current on the back payments as well as paying and repo, towing, storage and legal fees. A Chapter 13 Bankruptcy can either stop a repossession from happening or allow the consumer to get the vehicle back once it has been repossessed.