If you are in the secured credit and equipment leasing business, you have likely encountered debt default, where the debtor or lessee retains the collateral in question. While the debt is secured by the collateral, you will still often face the same question: how quickly can you possess the collateral to offset the defaulted debt?
You’re probably aware of your right to “self-help” repossession – a process that comes with its share of risks and limitations. But what happens if self-help repossession is not an option? Well, this is where a judicial process known as a writ of replevin comes in to help you take possession of the collateral while minimizing the risk to your business. But do you understand how replevin works?
Understanding Florida replevin laws
Basically, a writ of replevin is a court order that allows the creditor to seize the collateral. Per Florida Replevin Law, you can obtain a writ of replevin with or without notifying the debtor. This is because the process is relatively quick and intended to ensure that the debtor does not conceal or damage the property. To obtain replevin, however, you must:
- Verify the complaint by signing or attaching an affidavit confirming entitlement to the writ of replevin
- Post a bond that is two times the amount owed or the collateral’s value, whichever is less
As long as you satisfy these two elements, the court will issue a pre-judgment writ of replevin. And with this, you can immediately recover the collateral.
Safeguarding your rights
Replevin offers creditors a quick, safe and secure way option for recovering collateral following debt default. Knowing your legal options can help you safeguard your rights and interests while pursuing this line of debt recovery.