Repo agents vs. bankruptcy protection in Mississippi

When a person is dealing with significant financial challenges, he or she may be threatened with seizure of personal property. One of the more common scenarios is when a person is overwhelmed by debt, has fallen behind on their car payments, and is eventually threatened with repossession. While the threat of repossession is very real for all too many local drivers, repo agents must follow the law when taking back a car, truck, recreational vehicle or the like.

While there is not a specific state repossession license requirement, repo agents do need to abide by any licensing requirements at the city or county level. Actual repossession of a vehicle is permitted so long as repo agents do not commit a breach of the peace. In Mississippi, prior to the disposition of the debtor's collateral, the debtor has the chance to redeem that collateral via making a full payment of the debt in addition to all of the creditor's reasonable incurred expenses.

Of course, for many struggling in Mississippi, making a full payment of their auto debt is simply not possible. Those who are under the threat of repossession may look into personal bankruptcy, which can offer a way out of dealing with aggressive creditors and mounting bills. When a person files for bankruptcy, creditors' repossession actions must stop. In some cases, it may even be possible for a person who has just filed bankruptcy to get his or her recently-repossessed vehicle back.

Bankruptcy allows for a comprehensive solution to an often multifaceted problem; instead of trying to placate various creditors on one's own, an attorney can form a plan for a thoroughly fresh financial start. When it comes to keeping one's personal property, it can pay to seek out legal advice.

Source: American Recovery Association, "State Requirements," accessed Jan. 27, 2016

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