I plan on taking the LSAT this Oct., in the meantime I have a bankruptcy question:

I bought a new car from a Toyota dealership on 3/31/08. We put $1000.00 down and financed $15,016.37. The car was financed thru Wachovia. The Sales Contrast list Wachovia as the Assignee.

On 4/22/08 I got a letter from Wachovia listing our account number, payment amount and first payment due date.

Around about 5/12/08, I got a call from the dealership asking me if I want to return the vehicle. I said no. They said I could surrender it. Their reason for this was I had given them bad scores on the survey and had filed a complaint against them.

The first payment was due 5/15/08. On 5/15/08 I went to the local Wachovia Bank to make the payment and was told they don't take vehicle loans. I would have to send it in. I send the payment in. The place the payment was sent to was about 125 miles away so I assume they received the payment on 5/16/08.

On 5/16/08 the manager of the dealership we bught the car from called and said he wanted me to srrender the vehicle. If we didn't, he was going to repossess it that night. I told him he could not have it. I told him we have a loan and we have made 1 payment.

I talked to 2 police persons today and they said he can repossess the car even though it does not look like they have a legal leg to stand on. They said to check with the court to see if they have filed paperwork on a repossession. I didn't check today with the court because I ran out of time.

I did check with another court in that of getting a court order for harrassment against the manager and the business. They gave me the forms to fill out and I will return them on Monday.

My questrions are: can thry legally repossess the car?
And what can I do?

When you own a car on credit, the creditor owns the car until all the payments are made. So if a payment is late, the car is the property of the creditor and can be repossessed.

Normally, your creditor has legal authority to seize your vehicle as soon as you "default" on your loan. Once you are in default, the laws of most states permit the creditor to repossess your car at any hour of the day or night, without prior notice, and to come onto your property to do so.

However, when seizing the vehicle, your creditor may not commit a "breach of the peace" by, for example, using physical force or threats of force. Taking your car over your protest or removing it from a closed garage without your permission also may constitute a breach of the peace, depending on the law in your state.

Should there be a breach of the peace in seizing your car, your creditor may be required to pay a penalty or, if any harm is done to you or your property, to compensate you. Also, because of a breach of peace, your creditor may lose the right to collect a "deficiency judgment." A deficiency judgment is the difference between what you owe on your loan and what your creditor receives when reselling your vehicle. A private attorney or your local legal aid society can give you guidance about how your state courts have dealt with these
matters.

I would call the creditor, explain the situation and if an order for repossession has been filed then you may be able to stop it.

Contact an attorney in your area who is familiar with these issues for assistance.

Good Luck.