• Free Bankruptcy


    Start on the road to financial freedom; contact us today for a free evaluation.

    Start Now
  • Read What Our

    Clients Are Saying

    Our results speak for themselves; see what our clients are saying.

    Read More
  • Seven Convenient


    We have many locations to serve you, click here to find your nearest location.

    Contact Us
  • Meet Our


    Our team has 30+ years of experience. Get an experienced team on your side.

    Click Here

What Types of Personal Property Can My Creditors Repossess?

If you have been unable to meet your monthly debt payments in their entirety, you may be wondering what is going to happen to your valuable assets. Perhaps you’ve been told that your creditor will be able to repossess all of your property because you have defaulted on the agreement of your loan. In reality, there are strict laws that dictate what assets a creditor is legally entitled to repossess.

Your house

When you were preparing to buy your house, you probably took out a mortgage loan. The terms of your mortgage likely assigned the house itself as collateral in the event of default, so your creditor will be able to repossess this asset if you are no longer able to make your monthly mortgage payments. The process of repossessing a home is known as foreclosure. Typically, the lender will sell the house as a means to recover the remaining balance of the loan.

Your car

If you used a car loan to purchase your vehicle, your lender is legally entitled to repossess the vehicle in the event of payment default. As with home repossession, your lender will most likely sell your car in an attempt to recover the outstanding balance left on your loan. If there is still a balance left on the terms of your loan after your lender sells the vehicle, you may be held accountable for paying the difference.

Your property pledged as collateral

Only property specifically pledged as collateral may be taken during the repossession process. If you haven’t named an asset as collateral in the terms of your loan, your lender won’t be able to take it. However, any personal property used to secure a loan may be repossessed if you fail to make your scheduled payments.

For over two decades, Chicagoland’s Cutler & Associates, Ltd. has provided specialized legal services to help individuals during the bankruptcy process. We use our experience to help residents of the Chicago area move past their debt issues. To schedule a free initial consultation with one of our attorneys, call us at (847) 849-1834.

More from Cutler & Associates, Ltd.: Cutler & Associates, Bankruptcy , Assets a Creditor is Legally Entitled to Repossess

Categories: Bankruptcy Blog

FREE Bankruptcy Evaluation

Fill out the form below and one of our experienced attorneys will get in touch with you immediately.