Repossessions can quickly prove to be a challenging reality for many residing in Washington state. When living in Yakima County, you must take the time to fully understand the laws, your rights, and the processes involved with repossessions. This is where our expert Yakima attorneys come in. They have the knowledge and insight you need when it comes to applicable statutes and answers to any questions you may have.
What Is Repossession?A repossession happens when a creditor takes back property, like a car or other personal assets, due to missed payments on a loan or a lease agreement. In Washington state, repossessions are primarily governed by RCW 62A.9A-609, part of the Uniform Commercial Code (UCC).
Repossession TypesSome of the more common items subjected to repossession include cars, boats, recreational vehicles, and equipment financed through loans.
Washington State Laws on RepossessionWashington state laws set clear guidelines for how creditors and repossession agents can operate. Key legal provisions include:
Right to RepossessUnder RCW 62A.9A-609, a creditor can repossess collateral if you default on your payment obligations. However, the repossession cannot breach the peace.
Breach of Peace ExplainedRepossessions must occur without threats, violence, or damage to any property. For example, a repossession agent can’t enter a locked garage without the owner’s permission and use any kind of physical force or intimidation.
Notice RequirementsBefore a repossession can even happen, Washington law requires lenders to send a notice of default to you along with an opportunity to cure. This is all outlined in RCW 62A.9A-611.
Post-Repossession SaleAfter repossession, lenders may sell the property to recover the loan balance. According to RCW 62A.9A-610, the sale must be commercially reasonable, and they have to notify you of the sale date and any deficiency balance there may be.
Deficiency BalancesIf the sale doesn’t end up covering the total amount of your debt, there’s a good chance you will still owe what’s left of the balance. This is what is known as the deficiency balance, which can ultimately lead to additional collection actions against you.
Repossession in Yakima County, WashingtonYou will learn that repossession laws are applied uniformly across the state. However, there are still local economic factors and influences that can ultimately affect the process and how repossessions in the county are handled.
Regional ConsiderationsYakima County’s rural layout can impact how repossessions are carried out. For example, there are often longer distances between properties that can make repossession efforts even more time-consuming and costly for the lender. You may also have additional time to arrange a payment agreement before the repossession agents can access the property.
Borrower StrategiesAs a borrower in Yakima, you can benefit from proactive communication with your lenders. Often, they are more than willing to work with you to establish a payment plan or temporary relief during times of financial hardship. This is why it’s important to know your rights under Washington law and maintain detailed records of all communications and agreements with lenders.
Protecting Your Rights as a Borrower in Yakima, WashingtonWhen you know your rights, you will be in a much better position to respond more effectively to threats of repossession.
Before the RepossessionRepossession usually happens when you default on a secured loan like for your car or even furniture. Common causes include missing payments, violating the terms of your loan agreement, or failing to maintain insurance as required by your lender.
Can a Repossession Agent Enter Your Property Without Permission?Repossession agents absolutely can’t breach the peace, which includes entering locked premises without your permission. An action like this violates RCW 62A.9A-609.
Can You Retrieve Personal Items From a Repossessed Vehicle?Washington law says yes. Your lender must allow you to recover your personal belongings that were in the repossessed vehicle. They can’t sell or dispose of these items.
Are There Any Protections for Military Service Members Against Repossession in Washington?Yes, the Servicemembers Civil Relief Act (SCRA) provides protections, including requiring court approval for all repossessions if the service member took the loan out before active duty.
What Happens If You’re Behind on Payments But Haven’t Received a Default Notice?Lenders are required to send a default notice before repossession. If you haven’t received this notice, consult a Yakima County attorney.
How Long Does a Repossession Stay on Your Credit Report?Repossession can remain on your credit report for up to seven years and can ultimately affect your ability to secure future loans.
What Are the Consequences of Illegal Repossession?If a repossession agent or a creditor violates any of Washington’s repossession laws, they may have to face legal consequences. You can file a lawsuit for damages, including emotional distress and lost property, and seek an injunction to stop further illegal actions. Just be sure to document any interactions you have with repossession agents and save notices and correspondence from your lenders.
Avoiding Repossession: Tips for Yakima BorrowersBudgeting and Financial PlanningBankruptcy can be a powerful tool to help with repossession issues, particularly in Washington state. It provides a legal framework to either stop the repossession process or address the repossession actions under federal bankruptcy laws. Here’s how bankruptcy can play a role:
Automatic StayWhen you file for bankruptcy, an automatic stay is immediately enacted under 11 U.S.C. § 362. This prevents creditors from pursuing collection efforts, including repossessions, while the bankruptcy case remains active. The automatic stay provides you with some relief and gives you time to reorganize your finances.
Chapter 7 BankruptcyChapter 7, also commonly known as a liquidation bankruptcy, can discharge certain unsecured debts. This frees up some funds for you to pay secured debts like your car loan. However, it might not allow you to keep your repossessed property unless you can catch up on the payments or negotiate with the creditor.
Chapter 13 BankruptcyChapter 13 is also known as the wage earner’s plan and allows you to reorganize your debts and pay them over three to five years. This can be helpful if you want to recover repossessed property or cure a loan default.
Redemption OptionsUnder bankruptcy, you may have the right to redeem the property by paying the lender the fair market value rather than the total debt owed. This option can be beneficial if the remaining loan balance significantly exceeds the property’s value.
Bankruptcy involves court fees and legal representation, so it’s important to weigh the benefits against the expenses. Additionally, while bankruptcy can prevent repossession, it has a big impact on your credit score and can stay on your credit report for up to 10 years.
Seek Professional Guidance From a Knowledgeable Yakima Bankruptcy AttorneyBankruptcy can prove to be a lifeline for those struggling with repossession and can offer immediate relief and long-term solutions. This option also allows you to potentially keep your property, reorganize your debts, and work toward financial stability. When it comes to navigating repossessions and bankruptcy, it is crucial to have an attorney on your side. They can help you determine whether bankruptcy is a good option for your repossession circumstances.