May 2007
Repossession Calendar
Questions or for more information...
What can be repossessed?
When you buy a car, furniture or appliances on an installment plan, the dealer or store usually takes a "security interest" in the item you are buying. This means that while you are paying for it, the creditor (person or business to which you owe money) can take back or "repossess" your purchase if you break your promises under the contract.
If you buy a car, for example, the dealer or bank from which you borrow money to pay for the car usually takes a security interest in the car. Then, if you don't make the monthly payment or if you don't keep the car insured, the creditor can repossess the car.
Not all purchases can be repossessed. For example, credit card purchases usually can't be repossessed. To find out whether the creditor has a security interest and can take back your purchase, check your contract.
Can my property be repossessed because I am late making a payment?
That depends. If the paper you signed when you bought the item includes a security interest, there may also be a "grace period". A grace period is an additional amount of time for making a payment after it is due. However, if you don't pay during this grace period, the item you bought can be taken back (repossessed).
On the other hand, when you make a credit card purchase, there is usually no security interest in what you bought and it cannot be taken back if you are late making a payment.
Can my property be repossessed if I can't make a payment because I was sick and couldn't work?
Yes, unless the paper you signed (your contract) included Credit Accident and Health Insurance. (Check your contract to see if it is included.) This insurance pays the debt while you are out of work. But, you must be sick for at least one or two weeks before the insurance will pay. If your contract contains such insurance, you should notify both the insurance company and the creditor. Do this in writing and keep copies of your letters.
Although credit insurance may help you keep up with payments when you are ill, it is usually quite expensive and claims are often denied.
What can I do if someone comes to take away my property?
The law says that the creditor cannot come into your house without your permission to repossess personal property such as furniture or appliances. If someone tries to break into your house or garage, call the police. If someone claims to have legal papers, call a lawyer.
If you leave your car parked in front of your house or in your driveway where the creditor can find it, the car can be repossessed easily.
If a creditor threatens to repossess personal property, it is probably a good idea to talk to a lawyer. It is easier to prevent a repossession than to get your property back after it has been repossessed.
My property has been repossessed. What can I do to get it back?
If your property is repossessed without advance written notice, you can get it back if within 15 days of repossession you pay:
However, if you were given written notice at least 10 days before the repossession, you can get your property back only if the creditor agrees, and only on the terms the creditor agrees to. This may require paying off the whole debt, or refinancing the debt, right away.
If you are not given advance notice, you must be given written notice of what you owe within 3 days after the repossession. Be sure to get this information in writing and keep a copy.
If you cannot raise the money you owe within the time required, you may be able to get your property back, if it has not been sold, by calling the creditor and working out an agreement.
If anything about the repossession seems wrong or unfair to you, your best bet is to see a lawyer. The lawyer can tell you whether anything about the repossession was illegal and can go to court to help you collect damages or to get the property back.
If my property has been repossessed, does the law require me to keep paying for it?
No, with one big exception. If the item you bought was a car with a cash price of more than $2000, the creditor can:
In all other circumstances, however, the creditor must choose either to repossess or to sue you for the money you owe. The creditor cannot both repossess and sue you.
Can a creditor keep the personal belongings that were in my car when it was repossessed?
No, a creditor cannot keep your personal belongings.
My property has been repossessed and I can't raise the money I owe within 15 days. What else can I do to get my property back?
If you are unable to raise the money to get your repossessed property back, the creditor must sell the item, and you have the right to get written notice of the sale - when and where it will take place - before it happens. The sale must take place within six months after the repossession. If your property is to be sold at a public auction, you can bid for the item or get a friend to do so. You may also get it back by paying the debt in full any time before the resale.
After the sale, the creditor has to give you a written statement showing the sale price and what was done with the money. If there is money left over after the debt is paid, it must be returned to you. If the sale price is low, the sale may be illegal and you can sue to get damages. If anything else about the sale seems unfair or illegal, you should see a lawyer.
The calendar below will help you remember what happens when property is repossessed, and what you can do to protect your property. Your creditor may notify you that he or she intends to repossess your property before doing so but is not required by law to warn you ahead of time. Your legal rights will vary depending upon whether your creditor gave you advance written notice of the repossession.
| REPOSSESSION CALENDAR | |
| TIME | EVENT |
| Day of repossession | Creditor takes back your secure purchase. |
| Within 3 days after repossession | If you did not receive advance written notice of the repossession, creditor must give you a written statement of the amount you are currently in default and the expenses of repossession and storage. |
| 1 to 15 days after repossession | If you did not receive
advance written notice of the repossession, you can get your item back by paying the
amount in default (and correcting any other default) and paying the cost of repossession
and storage. If you did receive advance written notice of the repossession, you may be able to get your item back by working out an agreement with the creditor which may require refinancing or paying off the full debt. |
| Before resale | The creditor must give you at least 10 days' written notice of the time and place of any public sale or the time after which a private sale may take place. You may still get your item back up to the date of resale by working out an agreement with the creditor which may require refinancing or paying off the full debt. |
| Day of Resale (16 days to 6 months after repossession) | Creditor sells the item that has been repossessed. |
| 1 to 30 days after resale | Creditor gives you a written statement of how much the item sold for and how the proceeds of the sale were spent. |
(860) 344-0380 (Central CT & Middletown) or 1-800-453-3320 (All other regions)
This pamphlet was produced by the Legal Assistance Resource Center of CT in cooperation with CT Legal Services, Greater Hartford Legal Aid, New Haven Legal Assistance Association, and Statewide Legal Services.
The information in this pamphlet is based on the laws in CT as of May 2007. We hope that the information is helpful. It is not intended as legal advice for an individual situation. If you need further help and have not done so already, please call Statewide Legal Services (see above) or contact an attorney.
Copyright: May 2007