Vehicle Repossession Can I repo a car if customer voided contract by not paying?

[fhtow]

Sold a car to someone and had them sign a contract that stated the purchase price and when payments were to be made and the amount. Contract also states that if she did not pay that her (our old) car could and will be repo by us. (we own a towing company) we have a key to the car still and did have her switch her name on the title so that we were not liable if she was in a accident. she hasnt paid in 5 months and is now saying that she is going to claim bankruptcy. we have yet to see anything about that.

Are we allowed by the signed contract to repo the car??

Thank you.

Rachel

 

[fhtow]

By the way we do not have a dealers license, we do not have a car lot just sold one of our cars to a person and was scared that she wouldnt pay so we drew up a contract since she would be making payments.

 

[mightymoose]

You should not repo the car- main reason being that the car no longer belongs to you. The car became hers when you allowed her to take the title. However if you are listed as a lien holder you can likely repo.
You can't repo what does not belong to you.
What you have is a contract dispute that needs to be resolved in a civil court, and after getting a judgment you can look in to placing a lien and taking property.
Never give the title until you are paid in full.