If you fall behind on loan payments for a car, truck, or other vehicle, the creditor has a legal right to repossess this property. For people struggling with finances due to a temporary set-back, losing transportation this way can be devastating. It is certainly difficult to earn necessary wages when you lack reliable transport to get to and from work.
If you understand repossession laws, you can take steps to prevent seizure of your vehicle or get your automobile back as soon as possible. What are the repossession laws in KY? Below you will find a summary of relevant Kentucky laws.
Kentucky Repossession Laws
As spelled out in your loan agreement, your creditor has the legal right to repossess your encumbered vehicle without notice. If you have breached the terms of the agreement by failing to make payments, a representative can remove your car from your driveway or from a public area. However, there are laws that provide debtors in this situation with some protection.
What a Kentucky creditor may not legally do is any of the following:
- Use physical force to seize your vehicle
- Remove a vehicle from an enclosed area, such as a garage, without first obtaining the property owner’s permission
- Sell your repossessed vehicle without proper advance notice
- Sell the vehicle for an unreasonably low price.
It is important to note that most creditors will seek to sell a repossessed vehicle within 10 to 20 days, and if the total debt (including the costs of repossession) is not covered by this sale, you will still owe the balance due.
Also, denying the creditor permission to repossess your vehicle is unlawful if there is a court order (“Writ of Possession”) on file. If the creditor does break a law in the course of repossessing and selling your car or truck, you may have legal recourse to collect damages — or leverage to use in defense of a subsequent collection case.
Restoring Your Property
Once your ride has been repossessed, you have the right to retrieve any personal property that went with it and can potentially bring the vehicle back home. You should receive a timely notice of sale, and you have the legal right to negotiate for your vehicle before the sale date or to buy it back at the auction.
Of course, you always have the option of paying the full “redemption” amount, which must be provided to you in writing. This figure will include the unpaid balance on the loan and the repossession expenses.
Bankruptcy Protection Laws
If you do not have the funds to repurchase your vehicle and are overwhelmed by expenses and debt, you can consider a bankruptcy option. Filing for bankruptcy will put a temporary halt to a creditor’s vehicle repossession plans and give you time to renegotiate your loan terms to lower payments. In Chapter 13, you can get an (unsold) repossessed vehicle back from the creditor and modify your loan agreement to obtain more favorable terms.
Still Have Questions About KY Repo Law?
If you are concerned about Kentucky repo laws, perhaps you are facing a financial situation that is starting to feel out of control. If so, please do not hesitate to contact the bankruptcy attorneys at Bunch & Brock. We may have solutions that can allow you keep your vehicle and get you on the road to financial recovery.
