Car Repossession Defense in Miami

Arturo R. Alfonso P.A. represents Miami-Dade car owners who are behind on a vehicle loan, or whose car has already been taken, in English and Spanish, as part of the consumer bankruptcy and debt work the firm handles. This page explains how we work a repossession matter, from the first missed payment to the lender’s final accounting.

How a bankruptcy filing affects a repossession, and why timing matters so much in Florida, is covered in our guide Can bankruptcy stop a car repossession in Florida? This page does not repeat that. It follows a repossession matter the way we handle it, stage by stage, and explains the papers and deadlines you will see along the way.

Step 1: Finding Out Where You Stand

The first question is simple: is the car still in your driveway? Under Section 679.609, Florida Statutes, after a default a lender may take possession of the collateral without going to court, as long as it does so without a breach of the peace. That is why a repossession can happen overnight with no warning. If the car has not been taken, we move to Step 2. If it has, we move to Step 3. Either way, we ask for the retail installment contract, your payment history, any default or demand letters, and the registration.

Step 2: Before the Tow Truck Arrives

When a repossession is likely, the decision is whether a bankruptcy filing makes sense and, if so, which chapter. Miami-Dade cases are filed in the U.S. Bankruptcy Court for the Southern District of Florida. Before any filing, you must complete a credit counseling course within the 180 days before the petition (11 U.S.C. section 109(h)), so we ask clients facing a repossession to take it right away. Once a case is filed, we send the case number in writing to the lender and, if one has been assigned, the repossession company. Whether you keep the car through Chapter 7 or through a Chapter 13 plan depends on your income, your equity in the car, and how far behind you are; see Can I keep my car in Chapter 7? and our page on Chapter 13 in Miami.

Step 3: After the Car Has Been Taken

Your belongings come first. When a licensed recovery agent finds personal effects in a recovered vehicle that are not covered by the security agreement, Section 493.6404 requires the agent to inventory them and to notify you in writing within 5 working days after the repossession of where they are. The agent must give at least 45 days’ notice before disposing of them, and must surrender them to you or your designee on payment of reasonable inventory and storage expenses. We help you get that property back.

Next is the right to redeem. Under Section 679.623, you may redeem the car by tendering fulfillment of all obligations it secures, plus the lender’s reasonable expenses and attorney’s fees, at any time before the lender disposes of it, contracts to dispose of it, or accepts it in satisfaction of the debt. For most clients, paying the full balance at once is not realistic, so we review this option honestly with you.

Step 4: The Notice of Sale and the Sale Itself

A lender that sells a repossessed car must generally send you a reasonable signed notification of disposition (Section 679.611). In a consumer-goods transaction, Section 679.614 requires that notice to describe any liability you may have for a deficiency and to give a telephone number for the amount needed to redeem. Under Section 679.610(2), every aspect of the sale, including its method, manner, time, and place, must be commercially reasonable. We read the notice against these requirements and keep the envelope and its postmark.

Step 5: The Deficiency Letter

If the sale brings less than the balance, the lender may demand the difference. In a consumer-goods transaction, Section 679.616 requires the lender to send an explanation of how it calculated the deficiency before or when it first demands payment in writing, and within 14 days after receiving your signed request for one. We make that request and compare the figures with the sale price and the charges added. If the lender did not comply with Chapter 679, Section 679.625 makes it liable for losses its failure caused, and in a consumer-goods transaction sets a minimum recovery of the credit service charge plus 10 percent of the principal amount. If the lender sues for the deficiency, the case is usually filed in Miami-Dade County Court, and we raise these issues there. When the deficiency is one of several debts, a bankruptcy filing may address it along with the rest; our page on creditor harassment defense explains how we handle collection calls and lawsuits in the meantime.

What to Send Us Before the Consultation

• The retail installment contract or loan agreement, and any later modification or extension.
• Your payment history, and any default, demand, or right-to-cure letters.
• The vehicle registration and proof of insurance.
• If the car was taken: the date, the location, and any notice about your personal property.
• Any notice of sale, deficiency letter, or court papers, with their envelopes.

Our checklist of documents needed to file bankruptcy has the full list for a case.

Related Pages

• Bankruptcy Law in Miami
• Can bankruptcy stop a car repossession in Florida?
• Can I keep my car in Chapter 7?
• What is the automatic stay in bankruptcy?
• Chapter 7 Bankruptcy in Miami
• Chapter 13 Bankruptcy in Miami
• Wage Garnishment Defense in Miami