CreditorG��s Rights and Bankruptcy

CreditorG��s Rights and Bankruptcy - to the...

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Calvin Nguyen Professor Bohn Chapter 16 7/24/11 Creditor’s Rights and Bankruptcy 1. Once someone is default on a loan that was used to purchase a car, the creditor can take back your car without going to court or warning you in advance. Your creditor also may be able to sell your contract to a third party, called an assignee, who may have the same right to seize the car as the original creditor. 2. For some situation the creditors can come in and repossess your car, but if your creditor agrees to change your payment date, the terms of your original contract may not apply any longer. Once you’re in default the creditors cannot repossess your car. 3. Once your vehicle has been repossessed, your creditor may decide to either keep it as compensation for your debt or resell it in a public or private sale. In some states, your creditor must let you know what will happen to the car. 4. A. Yes, the creditors can obtain the deficiency and collect any other fees that are related
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Unformatted text preview: to the repossession. B. Yes, the creditors must pay the surplus after selling the vehicle, minus the repossession related fees, but it’s very uncommon. 5. The debtor my buy back the car if she/he do wish to do so, this is call a reinstate. It means you can reclaim your car by paying the amount you are behind on your loan, together with your creditor’s repossession expenses. 6. Any personal property in the repossessed vehicle, the creditor must tell you what personal items were found in your car and how you can retrieve them. Your creditor also may be required to use reasonable care to prevent anyone else from removing your property from the car. If your creditor can’t account for articles left in your vehicle, you may want to speak to an attorney about your right to compensation....
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This note was uploaded on 11/06/2011 for the course BUS 102 taught by Professor Lahai during the Spring '11 term at Everett CC.

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