Five Things to Know if Your Car is Repossessed

Having your car repossessed is a distressing event that can send shockwaves through your financial stability and daily routine. Whether due to unforeseen financial setbacks, missed payments, or other circumstances, having your vehicle repossessed can be overwhelming. Here we'll walk you through what to expect if your car is repossessed, shedding light on the process, the potential consequences, and offering guidance on how to navigate this challenging situation with resilience and clarity.

Creditors Can Repossess Your Car if it's a Day Late

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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.

The type of lender you have will also determine how quickly the vehicle is repossessed. National lenders and bigger banks are more likely to repossess a vehicle when it becomes more than 60 days past due. 

Subprime lenders, including the financing arms of buy-here/pay-here car lots are much more likely to repossess your vehicle more quickly. If your vehicle was repossessed and you want to get it back, your best option is to contact the lender as soon as possible before more late fees and interest accrue.

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Creditors Don't Have to Warn You Before Repossessing Your Car

​In Ohio, creditors with a lien on your vehicle don’t need a court order to repossess your car. The lien allows them to take possession of the vehicle as soon as it is in default. Whereas post-judgment collection efforts (think bank attachment or wage garnishment) allow you the opportunity to request a hearing, the vehicle repossession is immediate. Because of this, car repossessions can often be a surprise and leave owners without transportation or in need of retrieving items in the vehicle. If your car is behind, keep in mind that you risk repossession without any notice.

There is 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 May be Able to Get Your Car Back After It is Repossessed

​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.

Call Lake Legal Services for Help if Your Car is Repossessed

​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.