Repossession is the action companies take when borrowers fail to make payments on items they buy or lease. This process can occur with cars, trucks, RVs, and airplanes. Owning an aircraft isn't as common as owning a car. Yet, many people still buy or lease airplanes. Unfortunately, you risk losing the aircraft to repossession if you miss payments. So what should you do in this case? Please keep reading to learn why this happens and how to respond to it.
Consider why this happens
People with a pilot's license might lease or purchase an airplane. After all, pilots can use airplanes for fun and recreation. They can also use their airplanes to earn money by offering flight services to those who need them. But you must make the payments if you lease or buy an airplane. Unfortunately, some people might inadvertently miss a payment. They might also strike hard times and not have the money for the payments. When you miss a payment, the lender can take the airplane back. After all, a lender has the right to do this if you fail to comply with your part of the agreement. However, you might be able to stop it from occurring.
How to respond to airplane repossession
In most cases, lenders don't repossess airplanes without notifying the borrowers. This means that you should receive calls or letters from the lender announcing their intentions. When you start receiving these calls or letters, you must act. In other words, you won't have much time to settle the matter. Yet, you must settle it quickly to avoid losing the plane. If you lose the plane, you'll lose your investment. You'll also lose your ability to earn money if you use the plane for business purposes.
The best way to respond is by sending the money you owe. They won't take the plane if you catch up on your payments. However, it's not always that simple. For example, maybe you think you made all your payments and feel you don't owe them any more money. In any case, you can hire a lawyer that specializes in airplane repossession. The lawyer can review the case and determine your options. Then, you can follow the lawyer's recommendations, and hopefully, this stops the lender from pursuing repossession.
Contact a lawyer for help
If you're facing airplane repossession, you should consider hiring a lawyer. A lawyer might be able to help you avoid losing your airplane.
Reach out to an airplane repo attorney near you to learn more.