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How does vehicle repossession work in Tennessee?

Car ownership is essential in the United States

For most people in the United States, owning a vehicle is essential to their lives. Having a car makes it convenient to get to work or school, and around town for running errands.

It is certainly possible to do all these things on public transportation, but these systems can be unreliable, take longer, and generally be an inconvenience to users.

Given the freedom and convenience that comes with owning a motor vehicle, it's no wonder that 95% of American households have one.

The average American also holds almost $40,000 in personal debt. If they begin to default on payments, they are at risk of having their property repossessed. Their cars are usually the first things to go.

Car repossession in Tennessee

If you are a resident of Tennessee who is facing overwhelming debt, the possibility of having your car taken away is likely something that troubles you.

You probably have many questions. Keep reading, because we have some answers for you.

How does vehicle repossession work?

In short, it depends on the lender and the contract that you signed when taking out the loan. The circumstances under which your car could be taken away are generally:

· You took out an auto loan to purchase your car

· You used your car as collateral in getting a different loan

When you go into default on payments for these loans, either by failing to make payments or otherwise breaking your contract with the lender, your car could be taken away.

How do I know if or when my car will be taken?

In Tennessee, lenders are not required by law to get a court order so that they can repossess your car. Tennessee is also a self-help state, which mean that the lender is not obligated to give you notice before taking the car. Also, the law does not stipulate that the owner must be present when it is taken.

Since there are no legal guidelines for when they can take your car away, it will come down the lender's unique policies.

It may seem like a free-for-all, but there are a few guidelines that they must follow:

· They must collect the vehicle in in a civilized and lawful manner

· They cannot trespass on your property in to get the car

· They cannot take the car when you are inside it and they cannot forcibly remove you from it

What are my options after they take my car?

After the lender has seized the vehicle, they must send the owner a 10-day letter. This letter is official notice certifying that:

· You can get it back by paying off the loan, plus the cost associated with the repossession

· You have 10 days to accomplish this, and the lender can't sell off the car until this period has passed

Having unmanageable debt and facing repossession is extremely stressful. Filing for bankruptcy could provide some relief from attempts at debt collection and could be the pathway to a better financial future.

It is a big step making the decision to file, so it's essential to carefully consider your options before moving forward. An experienced bankruptcy attorney could be a useful resource in the decision-making process.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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