Repossession Laws in Oklahoma

by Pamela Parker

In the state of Oklahoma, a secured creditor has the right to repossess collateral without getting legal authorities involved as long as it does not breach the peace. A creditor has to file the appropriate paperwork with the Oklahoma Tax Commission in order to be recognized as a secure lienholder for the property. Oklahoma repossession laws outline the rights of secured creditors and the process for repossessing collateral.

Lienholder Rights

A creditor that finances property has the right to repossess the property when the debtor defaults on the contractual obligation to pay off the loan on a timely basis. When the debtors purchase the property through a financing plan, they normally have to sign a contract listing the property being purchased, the amount of the loan, dates when payments are due and the creditor's right to repossess the collateral if the debtors cease making payments.

Creditor Has to Record Security Interest

A lienholder has to submit a lien entry form, the certificate of title, or an application for the certificate of title to the Oklahoma Tax Commission to record its security interest in the property. The lienholder also has to submit a manufacturer's certificate of origin along with the lien filing fee to the Oklahoma Tax Commission.

Repossession

If the debtor breaches the contract and is no longer able to make timely payments, the secured creditor may send a written notice to the debtor stating that it plans on repossessing the property. If the creditor is not able to get in contact with the debtor or if the debtor is not willing to cooperate, the creditor can locate the property and legally repossess it. The creditor cannot breach the peace or violate any trespassing laws when repossessing the property.

Sale of Collateral

The creditor may sell the property to recoup any expenses incurred and to pay off the remaining outstanding balance on the loan. Once the creditor has set a date to sell the property, a notice of the sale date, time and place must be sent to the debtor, unless the debtor signed a document stating he does not need to be notified of the sale. When the property is sold, all rights to the property are transferred to the new buyer.

Reclaiming Collateral

There is usually a small amount of time in which the debtor can try to reclaim the property before it is sold by the creditor. If the debtor is able to reach an agreement with the creditor and fulfill any monetary obligations owed, the debtor may be able to get the property back. The expenses the debtor may have to pay include the default payments, as well as any other legal or administrative fees the creditor incurred to repossess the property.

About the Author

Pamela Parker became a freelance writer in 2009. She has worked in bankruptcy law since 2007. She writes extensively on bankruptcy and financial topics, with her work appearing on various websites. Parker has a Bachelor of Arts in sociology from Brown University and a Juris Doctor from the University of San Diego School of Law.

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