Repossession of any item or property is something which must follow a set legal procedure – from the very the first sign of trouble, Kevin Green’s Repossession Rescue can help you – click here to enquire
The process is similar for any asset repossession
You can negotiate with your lender at any time throughout the process – HOWEVER they are not obliged to accept any offer from you. It is important that should you put a proposal to your lender, it needs to be appropriate to the level of debt outstanding and what you can afford to pay.
1. Your lender needs to communicate in writing
If you have arrears on a secured debt, your lender will normally contact you by letter to chase payment.
It is important that you respond to any communication (particularly in writing) – even phonecalls remember what you said and then replay via letter and/or email. Restating your circumstances and ability to pay
If you fail to respond or if your lender does not accept your explanations or agree to a payment plan then they will need to write to you again, informing you that they will be starting court action to repossess your secured asset.
2. Lender applies for a possession order
It is illegal for your creditor to try to repossess your asset without the permission of a court
There are different court processes for the 3 jurisdictions in the UK.
RepossessionRescue.net will now continue using the England & Wales jurisdiction as a model – however please contact us if you would like to discuss the other jurisdictions
- England and Wales – County Court
- Scotland – Sheriff Court
- Northern Ireland – Courts and Tribunal Service
3. The court will set a hearing date
At this stage the court is only writing to you to fix a date for a court hearing –
PLEASE OBTAIN ADVICE ON YOUR SITUATION NOW – We would love you to contact us because we have massive experience in helping people in your situation however, even if you don’t contact us – we cannot stress how important it is that you get help or advice at this stage
The Application to the county court will usually be placed at the claimants locality – you (defendant) are able to apply to the court to change the location if it will create a financial hardship to yourself – however the court does not always have to adhere to this request.
Contained with your “Served Notice” will be:
- the particulars of claim (setting out the reasons the lender wants to repossess your home).
- a defence form for you to complete and return to the court
It is Vital that you reply outlining your defence. Include only relevant information not feelings or wishes. If possession of the asset is going to make your family homeless, include this but you dont need to include how that will make you feel. Include what the implications of this would be (for example if you have to move your children may have a long journey to school.)
4. The Court Case
The hearing will be heard by a judge in England, a Sheriff in Scotland or a Master in Northern Ireland. Once you and your creditor make your case the a decision will be made, and it will be one of the following (again we are focusing on the England & Wales jurisdiction):
- Strike out the claim – dismiss the case against you
- Dismissal or indefinite adjournment – Usually if you have proof of full payment of arrears
- Suspended possession order: – You are permitted to keep your asset, provided you keep to specific conditions (Normally repaying arrears)
- Adjourn the case – A rearrangement of the hearing for a later date.
- Order for possession – Your creditor has won possession of the secured asset and you will normally receive 28 days from the date of the court hearing to surrender it.
- A Time Order – This judgement can only be handed down against 2nd mortgage on a property (NOT against a mortgage which was used to purchase the home.
5. The court makes an order for repossession
If the judge decides that your asset is to be repossessed, a possession order will be granted. The court order will dictate the terms of the surrender and it is usual that you will be granted 28 days to enable you to ensure you have sufficient time to facilitate the handover. You may also be ordered to pay court costs.
IT IS IMPORTANT TO NOTE THAT WE CAN STILL HELP YOU PREVENT THIS.
If you are at this stage it is imperative you contact us
6. Bailiff instruction
If you do not surrender the asset on the specified date or if you default on a Suspended Possession Order, the creditor will then need to apply to the court for the courts bailiff warrant to remove the asset from your possession (or you from your home).
You will then be given a bailiff attendance date and time and the court bailiff will arrive (Usually with a representative of creditor and remove the asset from your possession or in the case of a home – to change the locks and ensure you are no longer on the premises).
IT IS IMPORTANT TO NOTE THAT UP TO THE SURRENDER/EVICTION DATE WE CAN STILL HELP YOU PREVENT THIS.
If you are at this stage it is imperative you contact us
- Your creditor must apply to the court for a Court bailiff’s warrant
- Bailiff’s they have the power to remove you from the property
- Your creditor will normally ask the courts to charge you accordingly for any costs this process incurs
7. Sale of your Asset
Following the repossession, your creditor will sell the asset. The proceeds of the sale will be split, your creditor will keep the money it is owed and they will then pay you anything that is left over.
- You will still be liable to pay interest on your debt until the asset is sold.
- If there is a shortfall between what you owe and what the asset is sold for, then you may end up owing money to your creditor