A Step-By-Step Guide For Airplane Owners Facing Repossession
If you received a notice that your airplane is being repossessed, you must understand as much about this legal process as possible. Understanding the reasons for the repossession, your rights as the borrower, and the steps you should take to protect yourself is essential.
Here's an overview of the repossession process and what you can expect as an airplane owner.
Understand the reasons for repossession: If you have received notice that your airplane is being repossessed, it is crucial to understand the grounds for the repossession. This could be due to default on loan payments, breach of the loan agreement, or violation of any other terms of the loan. Reviewing the notice of default sent by your lender and understanding the cause of the repossession is essential.
Seek legal advice: Consult with a local attorney who is experienced in repossession laws to understand your rights and options. This could include the possibility of contesting the repossession or challenging the validity of the default notice. An attorney will also help you understand the consequences of repossession, such as the impact on your credit score and any potential deficiency judgments.
Attempt to cure the default: When a repossession results from default, you may have the opportunity to cure the default by making past-due payments or coming to a new payment agreement with the lender. You should act quickly to cure the default, as there may be a limited timeframe in which to do so.
Be prepared for the repossession: If the repossession cannot be avoided, be prepared for the repossession. This may include removing personal items from the airplane, returning keys or documentation, and cooperating with the process.
Post-repossession: After the airplane has been repossessed, it will be sold to satisfy the outstanding debt. It is essential to understand the procedures for selling the repossessed property and any rights of redemption that may apply. Keep in touch with your attorney to understand your rights and options and to protect your rights throughout the process.
As you can see, airplane repossession is a complicated and overwhelming process, so it is vital to understand that options and resources are available to assist you. As an airplane owner, knowing your rights and obligations under the loan agreement and the law is crucial. You should seek legal advice as soon as possible because many steps in the airplane repossession process have strict timelines you will be expected to follow.
For more information, contact an airplane repo attorney near you.