Sometimes, creditors can repossess your car if it’s one day late.
How quickly the creditor can repossess your car depends on your contract. As soon as the payment is technically in default, the creditor can repossess it. Your contract may give you a grace period, but note that some creditors are quicker than others to show up and take your car.
Creditors don’t need to warn you that they’re taking your car
In Ohio, creditors with a lien on your vehicle don’t need a court order to repossess your car.
There’s no difference between a repossession and a voluntary surrender
The consequences of having a vehicle repossessed or voluntarily returning it are the same. The only situation where it would be different is if you have a written agreement that the creditor will not pursue the balance on the loan if the vehicle is voluntarily returned. These are very rare and, in almost every case, you’ll still be responsible for the loan balance.
You can still get your car back
The creditor is required to notify you in writing that you can still get your car back. Usually this is conditioned upon the repayment of all past due amounts, plus the cost to repossess the vehicle. If you fail to pay this amount to get the car back, the creditor must also notify you of the date and time of the sale of the vehicle.
If your car is sold, you are still responsible for the balance
If your car is repossessed and sold by the creditor, they will pay for the cost of the auction and apply the rest of the proceeds to your loan balance. If the funds are not enough to cover the balance on the loan, you are still responsible for the balance. The creditor can sue you and pursue the amount still owed, whether through wage garnishment, bank attachment or liens on any real property that you own.
If you can’t afford what’s still owed on the vehicle, bankruptcy is one possible option. At Lake Legal Services, we’ve handled thousands of bankruptcies. Call now at 330-605-3508 or fill out our contact form to see if bankruptcy is right for you.