How Can My Car Be Repossessed?

Your car may be repossessed by the owner of your auto loan if that creditor has a security interest in your car. Most creditors who issue car loans issue the loan with the car as collateral for the loan. That means that if you stop paying your car loan or default on your loan then your creditor may be able to repossess your car. Before repossessing your car, you creditor must provide you with notice, as required in your state, and with the opportunity to pay all outstanding balances including fees and interests. If you pay all outstanding obligations then your creditor may not repossess the car. If you are unable to pay all of the outstanding obligations, then the creditor may proceed with the repossession without a court order but the creditor may not breach the peace, or break into your garage, in order to obtain your car. If the creditor cannot obtain the car without breaching the peace then the creditor may go to court to obtain an order requiring you to comply with the repossession.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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