Repossessions

What is Repossession?

Repossession is a very particular method of debt recovery undertaken by some creditors to obtain a fast and effective return on investment in the debt recovery process. It involves the creditor obtaining a court order for the creditor to take control of the assets of the debtor in order that they might sell them in satisfaction of the debt owing.

How is repossession carried out?

When a debt is owing, a creditor can sue for the debt in a court and then get a judgment in their favour.  Once judgement has been entered, the creditor can then choose methods by which they will enforce the debt.   These methods can include bankruptcy proceedings, although many creditors prefer repossession orders because these are generally faster and more effective than bankruptcy proceedings.  Normally, a creditor can file a notice of motion for a writ of execution or levy of property which, if passed will allow the creditor to appoint a sheriff who will then visit the property of the defendant (debtor) to seize property equivalent to the value of the debt so that it may be sold at auction and the debt may eventually be satisfied.

For creditors, it is important to ensure that the orders for repossession appropriate for their own purposes and realistic in the circumstances.  This means they must know where the debtor is located and what they own so that they can give appropriate directions to the sheriff of what to take from who.  To ensure this, the creditor should ideally do property searches to verify what property the defendant owns and where it is.

What happens after the actual repossession?

Normally the sheriff will take the property to their auction yards and there will be regular auctions which are open to the public where anyone can come and bid for the item and the winner of the auction becomes the new owner of the property and the funds are distributed to the appropriate creditor.

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