The threat of repossession can be incredibly stressful, whether it's your car, furniture, or other valuable property. In Wisconsin, however, consumers have important rights and avenues to explore before and even after a repossession takes place. Acting quickly and understanding these rights is crucial to protecting your assets.

Here's a breakdown of how to stop a repossession in Wisconsin:

1. The "Right to Cure" Notice: Your First Line of Defense

Wisconsin law, particularly the Wisconsin Consumer Act (WCA), provides consumers (on certain loans) with a vital "right to cure" default before a lender can repossess your property.

• What it means: If you miss a payment and are considered in default, your lender must send you a written notice of your "right to cure" the default. This notice will explain what you need to do to bring your loan current.

• Timeframe: You typically have 15 days from the date you receive this notice to cure the default. To "cure" means paying all missed payments, plus any associated late fees and other contractually agreed-upon costs.

• Importance: This 15-day window is critical. It's your opportunity to catch up and prevent the repossession. Don't ignore this notice!

Important Note: If you've received and cured a default twice within a 12-month period for the same loan, you might not have this right a third time.

2. Communicate with Your Lender (Early!)

As soon as you anticipate difficulty making a payment, reach out to your lender. They may be willing to work with you on solutions like:

• Payment extensions: A temporary pause or reduction in payments.

• Loan modifications: Adjusting the terms of your loan to make payments more manageable.

3. Object to the Repossession (During the Act)

Under Wisconsin law, if a repossession agent is attempting to take your property, and you verbally object to the repossession, they are legally obligated to stop. Continuing after your objection could be considered a "breach of the peace" and make the repossession unlawful.

• What to do: Clearly state your objection. Do not use force or put yourself in harm's way.

• Document everything: If possible, record the interaction with your phone. This can be crucial evidence if you need to pursue legal action later.

• Limits: Repossession agents cannot forcibly enter your home or a locked garage without your permission or a court order.

4. Demand a Court Proceeding

If you receive a "right to cure" notice and believe you are not in default, or you object to the lender's right to repossess, you can demand in writing that the lender proceed in court. You typically have 15 days from the postmark of the "right to cure" letter to make this demand. This can force the lender to prove their claim in court before they can repossess.

5. Consider Bankruptcy: A Powerful Tool

Filing for bankruptcy can be a highly effective way to stop repossession, both before and after it occurs.

• Automatic Stay: When you file for bankruptcy (Chapter 7 or Chapter 13), an "automatic stay" immediately goes into effect. This is a court order that stops creditors from taking any collection actions against you, including repossession.

• Chapter 13 Bankruptcy: This is often the preferred option if you want to keep your property. Chapter 13 allows you to reorganize your debts and create a repayment plan, which can include catching up on missed payments for your car or other secured property over a 3-to-5-year period. It can also potentially reduce interest rates or the total amount owed on the loan. Even if your car has already been repossessed, a Chapter 13 filing can sometimes get it back if it hasn't been sold yet.

• Chapter 7 Bankruptcy: While Chapter 7 is a liquidation bankruptcy, it can still temporarily stop a repossession. It may also eliminate any "deficiency balance" you might owe after a repossessed item is sold.

6. Seek Legal Advice Immediately

The laws surrounding repossession in Wisconsin are complex, and time is always of the essence. If you are facing repossession, it is highly recommended to consult with an experienced consumer rights or bankruptcy attorney in Wisconsin. An attorney can:

• Explain your specific rights and options based on your situation.

• Negotiate with your lender on your behalf.

• Help you understand if a repossession was illegal.

• Guide you through the bankruptcy process if it's the right choice for you.

Don't Wait!

Delay can significantly limit your options. The sooner you understand your rights and take action, the better your chances of stopping a repossession and protecting your financial well-being.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.