When you take out a secured loan for an item, like a car, the item is the security. Can I Get My Car Back After a Repossession in Alabama? If you become delinquent or late on the payment by more than 30 days, or if you don't have adequate insurance, the lender has the right to retrieve or repossess their property (your car). You typically will need to bring your driver's license and proof of insurance before the lot custodian will allow you to drive your car off the property. What happens after your car gets repossessed? So if your car gets repossessed, lots of emotions come out. Document the repossession. Amelia Niemi is an attorney licensed in Illinois. This means if you don't make the payments in time, the lender can repossess your car and sell it to pay back the loan. Your lender will send you a written notice with the reinstatement quote and the amount of money you must pay to bring your loan current. This means if you don't make the payments in time, the lender can repossess your car and sell it to pay back the loan. Nonprofit credit counselors are required by law to act in your best interest. There are ways, as well, to strengthen your credit even with the repossession still on your credit report: If you are in danger of a car repossession, time is of the essence. With over two decades of experience, Sheryll has bylined hundreds of stories for websites, magazines, newspapers for trade associations and business clients. However, keep in mind that an attorney's fees may be outweighed by the fees you would pay to the lender and the repossession lot to get your car back. Your states laws will list exactly what the loan company must do when it sells the car.. The automobile repossession rate in 2021 was 13% of all car loans. These include: Repossession may also hurt your ability to get loans in other ways. Nevertheless, the sale price might not be the full market value of the vehicle and it might not match the amount thats still owed. Despite state differences, the federal Dodd-Frank Act prohibits service providers from committing unfair, deceptive, or abusive acts or practices that protect you from repossession if: Members of the military have added protection. However, in some situations, the lender chooses not to repossess the car. After your car is repossessed, you may have time to redeem it. You might be lost, confused, scaredmaybe even angry. In other words, if you don't pay your car payments on time (what the bank folks call "keeping your loan current . This letter confirms that your vehicle was repossessed and tells you how to get the vehicle back. This means you have a certain period of time usually a few days or a week to get caught up on payments and pay other fees the lender imposes. Plus, your credit score will likely take a hit. Repossession means the creditor can seize the vehicle from your property so long as they don't commit a "breach of peace": use physical force, threats of force, or seizure from a closed garage without permission. It's one of the greatest civil rights injustices of our time that low-income families cant access their basic rights when they cant afford to pay for help. Unfortunately, many Alabama residents are at risk of vehicle repossession. After a car is repossessed, you're likely to receive documentation from your lender on the steps to take to get your car back. If you can afford to do so, you may want to set up automatic payments with your lender. Where Can I Find More Information About Repossession Laws in Alabama?, How To File Bankruptcy for Free in Alabama, Eviction Laws and Tenant Rights in Alabama, How to Become Debt Free With a Debt Management Plan in Alabama, How to Get Free Credit Counseling in Alabama. As you can see, the money the car brings in from the sale doesnt just go to repay the loan. You likely wont know when this will happen the repo man will show up and take your car. Reasonableness is ultimately determined by a court and will depend on the type of vehicle taken, how it was taken, and where it was taken. This page will provide an overview of Alabama's Repossession Laws and what you should know if you've fallen behind on car payments. If. Reorganizing Your Debt? Bar associations also often have attorney referral programs, where you describe your situation and are matched with attorneys who are best able to help you. Trustee Program has a searchable list of approved credit counseling agencies available at. This would allow you to keep the car while a payment plan is worked out. As much as you want to get your car back, make sure you're not getting in over your head. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/c9\/Reinstate-Your-Car-Loan-After-Repossession-Step-1.jpg\/v4-460px-Reinstate-Your-Car-Loan-After-Repossession-Step-1.jpg","bigUrl":"\/images\/thumb\/c\/c9\/Reinstate-Your-Car-Loan-After-Repossession-Step-1.jpg\/aid7303322-v4-728px-Reinstate-Your-Car-Loan-After-Repossession-Step-1.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"