Auto repossessions are expected to climb in 2023 now that consumers no longer have the benefit of more leniency from lenders and stimulus programs, but car owners in Pennsylvania do have some important rights when facing a repossession.
Unable to work, Emereonye’s car is being repossessed for missed payments. Emereonye could voluntarily surrender her car but stands to lose her down payment of $6,000 and possibly more money in other fees.
"That’s not fair," said Emereonye. "I used the car for just one month." Hardship on its own is not a defense to a vehicle purchase agreement, says consumer attorney Nathan DeLadurantey. He adds that surrendering a car may mean the vehicle is headed for auction
Higher car prices are leaving many consumers with more debt. The Pennsylvania Department of Transportation says it processed 9,472 repossessions in 2022. That’s down from 16,801 repossessions in 2019, before the pandemic when lenders reined in repossessions. Now, the number of repossessions is predicted to climb back up to more historical rates.
Another reason to use Chapter 13 is to stop repossessions and to get your car back. If your automobile is behind and you would like to continue making payments, Chapter 13 may be the best solution for you. Many times a Chapter 13 case can even cause your payment(s) to be lowered.
After your Chapter 13 is filed, the “automatic stay” will protect you from a further collection activity. This stay instantly stops all repossessions. If y
