One of the most frustrating and stressful aspects of dealing with a substantial amount of debt are the phone calls and efforts of debt collectors and creditors to get money from you. Sometimes, these efforts can involve more than just calls and letters – they may even attempt to collect on debts by taking your property.
This action is repossession, and while it may seem inconceivable that a third party could come and take your property, it is possible if you are behind on certain payments. If you are a Tennessee consumer overwhelmed by debt and unsure of how to make the stress stop, it could be helpful to consider the benefits of consumer bankruptcy.
Understanding the process of repossession
Repossession can happen if you are behind on payments on items such as cars, furniture and other items bought on credit. While this is a rather extreme course of action, a creditor can start the repossession process after just one missed payment. If you are behind on your payments and have no hope of ever catching up on your home, it can be helpful to understand the following:
- The repossession process can start as soon as the consumer defaults on a contract, which is missing even just one payment.
- The creditor will usually contract with a third party to do the actual repossessing of the property.
- In many cases, the creditor will not need a court order to start the process of repossessing property.
- While a repossession agent can reclaim property, he or she cannot breach the peace or come into your private property to take the item.
The threat of losing your property is frightening. It is normal to feel overwhelmed by this possibility, but you have options. By filing for consumer bankruptcy, you may be able to make the repossession stop by enacting the automatic stay.
The road to a better financial future
If you are dealing with overwhelming debt and have no hope of ever catching up on your own, you may find it helpful to learn more about the benefits of filing for either Chapter 7 or Chapter 13 bankruptcy. This step can allow you to work toward a better financial future and make harassment from creditors stop.
Your situation may feel daunting, but you have various options by which you can claim a better financial future. You can learn more about these various choices by seeking a complete evaluation of your case.