If you are delinquent with your aircraft loan payments, chances are that you may face repossession. Repossession is the reclaiming of the aircraft if the lessee has not paid it off on a date according to the agreement but the aircraft still has value.
After the repossession, a lessor can sell, seize, keep or lease the aircraft to fulfill the debt. However, this type of repossession is allowed only when the lessor doesn't disturb or damage the "breach of the peace." Generally, this means that the lessor must not use physical force for the repossession. If he has done so, he should immediately stop the physical efforts and consult the court to retrieve the aircraft.
But if the lessee cannot fulfill the agreement and causes damage, then the lessor has the right to require action to compensate their loss according to the signed lease. The lessor will need to prove the claim of harm from the lessee in light of the signed agreement. According to U.C.C. - ARTICLE 2A, other alternative statutory damage formulas are also available.
Now, if you have leased an airplane, chances are you may skip a payment due to any unwelcome reason or any unfortunate life event. If that happens or you expect it to happen, you may become the victim of repossession. So it is good to hire or contact an attorney before submitting to the repossession of your aircraft.
Taking precautions before repossession is necessary. Finding the best aircraft attorney to represent you is a time-consuming task. After all, a few lawyers work as airplane attorneys because fewer people have airplanes.
It's also necessary to hire a lawyer before the repossession because the lawyer can advise you about it, and you may avoid a repo happening in the first place. Hiring them may help you avoid a major financial loss.
Financial loss is something that you want to stay away from. Repossession is not the only factor that causes financial damage, but there are side effects. For example, your airplane may be the source of your transportation and may be an important factor in your business. So you can have the loss from the business as well.
It is important to stay educated about repossession laws to avoid harmful circumstances. You will have more benefits of hiring an attorney if you do it before the repossession because the longer you wait, the larger the loss.
Contact an airplane repo lawyer near you to learn more.
