Wrongful Repossession Arizona

wrongful repossession Arizona

We understand that when life happens it can become a hardship to make regular payments on a loan. Insurance can also lapse or uncontrollable events can damage and devalue property you still owe money on. If this occurs, a creditor can then take back, or repossess, the property without notice. However, Arizona’s repossession law was established to help protect consumers from wrongful repossession of property. 

What Qualifies for Wrongful Repossession?

Secured property that can be repossessed in Arizona include cars, trucks, motorcycles, privately owned airplanes, mobile homes, and furniture. 

Examples of wrongful repossession include: 

  • The creditor violates Arizona’s repossession law. There are steps that every creditor must take for a repossession to be lawful. If they fail to take these steps, a repossession may be considered unlawful under Arizona law. This includes seizing a vehicle before the consumer was in default. If the repossession is wrongful, legal action can be pursued.
  • The wrong property gets repossessed. If a creditor repossesses property or a vehicle that is not collateral on the loan, it is considered to be unlawful. An attorney can help determine if you have the right to file a lawsuit and possibly get out of having to pay the remaining “deficiency” loan balance. 

Conversely, the process of repossession is lawful if you default on your loan agreement. Examples of default include if you’ve:

  • Failed to make loan payments on time
  • Significantly damaged the property 
  • Failed to properly insure the property 

Can You Stop a Repossession?

vehicle repossession

Yes, you can stop a creditor from repossessing your property through a Chapter 7 or Chapter 13 bankruptcy. More specifically, either of these bankruptcy options may help stop the repossession process by putting an automatic stay into place. We advise you to contact a bankruptcy lawyer to help you determine if bankruptcy is right for you.  

Does Repossession Eliminate Debt in Arizona? 

No, repossession of a vehicle or other property does not eliminate your debt unless the value of the property repossessed exceeds the amount owed and the property is sold for more than you owe. 

Typically, however, a  repossession increases the amount you owe a creditor. Why? Because a creditor can add repossession costs to any fees you owe under your loan contract. 

Phoenix bankruptcy lawyer

Get Help With Your Debt and Avoid Repossession 

Are you ready to put a stop to a repossession of your secured property and/or vehicle? Take the first step towards getting help to resolve your debt by scheduling a free case evaluation with us. 

At Lerner and Rowe Law Group, our award-winning Tucson and Phoenix bankruptcy lawyers know how to take the appropriate legal action to help manage your debt and avoid repossession.

Call 602-667-7777, speak with a representative now using our LiveChat service, or submit the details of your case online 24/7.

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.