Airplanes can be repossessed for non-payment of debt or lease obligations. If you're concerned about your aircraft being repossessed, it's essential to know what to expect from the process and that you can receive help from an airplane repo attorney.
The Repossession Process
The creditor will try to contact you to have the debt obligation satisfied. However, if you cannot make your payments, they may choose to file a lawsuit. The court will issue a writ of execution, a document that gives them the right to take possession of your airplane. A repossession agent will then be sent to issue a notice of repossession. Then, you will have time to respond and challenge the repossession in court.
Contact an Attorney Immediately
If your airplane is being repossessed, you should immediately contact an attorney who specializes in aviation law to discuss your options and rights. The attorney will review your contract and any documents relevant to the legal efforts to repossess your airplane.
Negotiate a Settlement
To avoid losing your airplane, you can negotiate a settlement with the creditor with the help of your attorney. They might arrange a lump sum to pay the outstanding debt, and you will only have to pay a portion of the cost. If you decide you do not want to keep the airplane or cannot afford it, you can negotiate to sell it to pay off the debt.
Know Your Legal Options
Strict laws and regulations surround aircraft repossession, so seeking legal advice is crucial before taking any action. If the creditor does not follow these regulations, they may not be able to legally take possession of your airplane and will have to start the repossession process again.
For example, the lender must follow proper legal procedures to notify you of the intent to repossess the airplane. Failure to properly serve notice of repossession can allow you to challenge the repossession and buy more time.
Stop the Sale of Your Airplane
If your airplane is repossessed, it will be sold at an auction, and the revenue generated from the sale will be used to pay your debt. They must follow proper procedures to ensure a fair and transparent sale. Failure to follow appropriate auction procedures may create an opportunity for you to challenge the sale.
For example, the auction must not be held in secret, and you must have the right to attend it. If your rights are violated, your attorney will represent you during court proceedings. Contact a firm like Goicoechea DiGrazia Coyle & Stanton Ltd to learn more.