When Can Creditors Use Detinue When Repossessing Property?

 Posted on August 10,2021 in Creditor's Rights

When a borrower defaults on a loan, a creditor has the right to repossess the collateral used to secure the loan. This option may be used by auto lenders or other creditors, and a vehicle or other property may be repossessed if a borrower fails to make the required payments. However, a debtor may attempt to avoid repossession by hiding a vehicle or other property, keeping it locked inside a garage, or moving it to a location where it cannot be accessed. In these situations, a creditor may be able to file a detinue complaint against the borrower, asking the court to require the debtor to turn over the property or face consequences.

When Is Detinue Appropriate?

Typically, creditors use the legal process of replevin to repossess property. In these cases, a creditor will be required to post a bond, and a court order will be issued giving the sheriff the authority to seize the property. A representative of the creditor will usually need to accompany the sheriff when executing the repossession order. However, if the property cannot be located, a replevin action may not be appropriate. 

Detinue differs from replevin in that it will seek recovery of property that is wrongfully held or retained by a borrower rather than property that has been wrongfully taken. When pursuing a detinue complaint, a creditor will ask the court to issue an order requiring the borrower to turn over the property in question or repay the creditor for the value of the property that has been wrongfully sold or destroyed. If the borrower refuses to comply with the court’s orders, they could be held in contempt of court and face penalties such as fines or jail time.

Detinue can ensure that a creditor will be able to recover property, even if the location of the property is unknown. A creditor may also be able to recover damages based on losses resulting from the failure to turn over the property as required. A detinue action will not require a creditor to post a bond or have a sheriff seize the property. However, these cases can take longer to complete, and property will remain in the possession of the borrower until a final judgment is issued.

Contact Our Chicago Detinue Attorneys

Creditors who are looking to collect debts that are owed or repossess vehicles or other property must meet certain legal requirements and follow the correct procedures. When filing legal complaints and asking the court to grant requests for replevin or detinue, creditors can increase their chances of success by working with an experienced attorney. At Dimand Walinski Law Offices, P.C., we have helped creditors pursue hundreds of replevin and detinue actions, and we can make sure repossessions are completed successfully. Contact our Chicago, IL debt collection lawyers today at 312-704-0771.

Sources:

https://ilga.gov/legislation/ilcs/ilcs4.asp?DocName=073500050HArt.+XIX&ActID=2017&ChapterID=56&SeqStart=120000000&SeqEnd=123000000

https://www.nationallist.com/image/cache/White_Paper_Illinois_Debt_Collection.pdf

https://www.illinoiscourts.gov/rules-law/supreme-court-rules/article-ii/