Repossession
When an asset is purchased on credit the terms of the agreement are usually specified. A lien will usually protect the creditor. Repossession is the creditor’s legal right when the contract terms are violated. Failure to pay the debt will frequently result in repossession. Usually repayment of the debt will avoid sale of the property. The debtor may have equity in the asset that needs to be protected. The asset may be essential. The asset may be the car needed to go to work and no adequate transportation exists besides the car. Chapter 13 may allow the owner of the car to avoid repossession. Early action is required. Loss of the vehicle may result if no action or tardy action occurs.