If you own an airplane and there is the possibility of it being repossessed, you should consider hiring an attorney with experience in this area of the law. This is especially true if you need your plane for income or you find it to be a necessity for the type of work that you do. The following are a few things an airplane repo attorney may be able to do for you.
They can often delay the repossession process
An attorney, through legal means, may be able to delay the process of repossessing your airplane. This delay can give you time to sell the aircraft yourself. You are likely to get a better price. You may also use this time to raise the money you need to catch up on your late payments. Perhaps you can get a second loan from another lender, or you can sell an asset to get the money.
An attorney may be able to reinstate the loan
Depending on the state you live in, you may be able to reinstate the loan. Often this simply means catching up on your overdue payments. Even if you live in a state that does not have this law, an attorney can negotiate with the lender. Repossessing a plane is costly, much more so than repossessing something as simple as a car. If you can come up with the money, an attorney may be able to convince the lender to stop the repossession process and reinstate the loan.
They can sometimes refinance the loan
If you are behind on your payments, you will have to catch up at some point. However, it may be possible to renegotiate the loan and put your overdue payments at the end of the term. You may still have to pay late fees and other penalties, but these, too, may be tacked on to the end of the loan. This type of negotiation is seldom accomplished by the borrower. You need a legal professional.
They may be able to get your plane back
Although the best time to call an attorney is before your plane is repossessed, you may still be able to get the plane back. It may be possible for a lawyer to negotiate with the lender prior to an auction and settle on terms that are agreeable to both yourself and the lender.
If you believe that your lender is preparing to repossess the plane, you need to call a lawyer with experience. They may be able to stall the process while you decide on what you want to do. It may also be possible to refinance the loan, and in some states, reinstate the loan. And if you just found out your plane has been taken, it may be possible for an attorney to negotiate for you to get it back.