During bankruptcy, many assets may be liquidated, which means the bankruptcy filer might end up losing possession of the asset. However, once an asset is lost during bankruptcy need not be the last resort. If the filer feels he/she needs the asset dearly, there are possibilities for the filer to reclaim it. The whole process of reclaiming an asset after being liquidated is referred to as repossession post-bankruptcy.
In detail, a debt that is backed by an asset once liquidated, the lenders or creditors get the possession of the asset from the filer. This usually is seen in bankruptcies via Chapter 7. It can also be termed foreclosure, wherein the lender decides to foreclose on the asset mortgaged while availing credit. To prevent foreclosure or to repossess your assets, log on to https://recoverylawgroup.com/bankruptcy/ to know inside out about bankruptcy right now.
Benefits of repossession or why repossession?
Repossession of an asset might be necessary for a filer to survive or manage his/her only source of income. Repossession can also be an afterthought to sustain minimal damage to the credit score. Whether repossession of an asset after bankruptcy is viable or not depends on a case-to-case basis. Dial 888-297-6203 in Los Angeles & Dallas, TX to know if your case holds for a beneficial repossession.
How does repossession work?
There are some categories of assets that are usually traded as a mortgage for debt that is usually repossessed. These may include houses, art, cars, boats, jewelry, etc. After the bankruptcy is filed and the debt is discharged, assets are allocated to respective lenders, and the case is settled. Repossession can have a different meaning in terms of a lender. A lender grants debt for an asset as a guarantee. In case, the terms of the loan are not fulfilled, the lender might be well within his/her rights to seek possession of the asset. This process may also be referred to as a repossession by the lender from the borrower.
It is important for the lender or the borrower to refrain from any action that is not supported under the law. If the lender or the borrower is found to be in breach of the peace law, while negotiating or repossessing the asset, there might be separate legal action against the guilty. The lender or borrower should refrain from threatening or using violence against each other to stake a claim on the said property. They should also refrain from damaging each other’s property or the asset in question.
Negotiation for repossession after bankruptcy
The asset since liquidated as per legal terms and in possession of the lender, repossession can be a difficult task. Repossession of the asset can be at the mercy of the lender and his own terms as an out-of-court settlement as the borrower have limited choices or options after bankruptcy. However, if you are considering bankruptcy, you can dial 888-297-6203 now and safeguard all the assets you need to minimize the repossession stress.
A repossession claim can also be filed in bankruptcy court before the lender liquidates the asset to a third party. Depending on the circumstances and provided the filer continues to make regular payments without default, such repossession might be approved by the court.