The information listed below provides a brief summary of individual state laws regarding secured transactions. Since an automobile loan is almost always a secured loan — meaning the financed property is the collateral — these laws are applicable to situations involving auto repossessions.
ALABAMA
When repossession can happen:
This can vary and is dependent on the specific terms of your lease or loan contract. You will need to review your contract for any information about a grace period and how late you can be on your payments before your lender will repossess your vehicle.
What will happen:
A lender, titleholder, or lessor does not need a court order to take possession of your vehicle. They can disable the vehicle or repossess on your property, as long as it does not breach the peace.
State Code:
ALASKA
When repossession can happen:
You can be at risk for repossession after one missed payment. See the terms of your lease or loan contract for specific details about a grace period.
What will happen:
Your creditor can repossess or disable your car on your property after you default on your loan or lease. As long as they don’t breach the peace, repossession does not require a court order.
State Code:
ARIZONA
When repossession can happen:
After missing one payment, your lender or creditor can accelerate your auto loan. This means that you will now owe the entirety of your remaining balance immediately or in the near future. If it comes to this, your best option is to communicate with your lender and negotiate a payment plan if you are able to. If you cannot rectify your debt, the lender or creditor is able to begin the repossession process.
What will happen:
The creditor is allowed to repossess or disable your car on your property as long as they do not breach the peace. They can also pursue legal documents that will give them access to your property for repossession.
State code:
ARKANSAS
When repossession can happen:
Repossession can be on the table as soon as you default on your lease or loan contract. This may be after you miss a single payment. Your lease or loan agreement should outline when your payments will be considered in default.
What will happen:
A lender, titleholder, or lessor may disable or repossess your vehicle on your property as long as they do not cause a breach of the peace. If a breach of the peace occurs, they may choose to get a court order to repossess your vehicle.
State Code:
CALIFORNIA
When repossession can happen:
A creditor may begin the repossession process after one missed payment. You can refer back to your lease or loan contract to get the details concerning a grace period.
What will happen:
As long as it does not breach the peace, a creditor can repossess your vehicle on your property. They are allowed to enter any fenced or locked area or move other vehicles to get to your car. They may pursue a court order if they are unable to access your vehicle.
State code:
California Commercial Code 9609
COLORADO
When repossession can happen:
Ten days after you miss a payment, your creditor may notify you that you have defaulted on the loan. If you do not make a payment within 20 days of the first notice, the creditor can accelerate your loan. This means the entire amount of the loan will be due immediately, otherwise it may initiate car repossession.
What will happen:
As long as they do not breach the peace, your creditor can repossess or disable your vehicle on your property.
State code:
C.R.S. 4-9-101
CONNECTICUT
When repossession can happen:
Your creditor or lender can start the repossession process as soon as you miss a payment. With that being said, they are required to give you a notice of intent to repossess your car at least 10 days before they are scheduled to repossess.
What will happen:
As long as they do not breach the peace, your lender or creditor may repossess or disable the vehicle on your property.
State code:
DELAWARE
When repossession can happen:
Repossession is on the table after you miss a single payment. See your contract for specific details regarding a grace period.
What will happen:
As long as they do not breach the peace, your creditor can repossess or disable the vehicle on your property without a court order.
State code:
DISTRICT OF COLUMBIA
When repossession can happen:
When you miss a payment, your creditor or lender can send you a notice that they’re going to repossess your vehicle. They are required to give you at least 10 days notice before repossession.
What will happen:
As long as there is no breach of the peace, they are allowed to repossess or disable your vehicle on your property without a court order.
State code:
FLORIDA
When repossession can happen:
Repossession can happen as soon as you default on your loan; meaning you miss one or more payments.
What will happen:
The creditor or lender can disable or repossess your vehicle on your property without a court order or legal documents. As long it does not breach the peace, it is entirely legal. In addition, they can obtain a court order for repossession.
State code:
GEORGIA
When repossession can happen:
Your creditor or lender can repossess your car as soon as you miss one payment. This is dependent upon the specific details of your contract.
What will happen:
As long as they do not cause a breach of the peace, your creditor or lender is allowed to disable or repossess your vehicle without a court order or legal documents.
State code:
HAWAII
When repossession can happen:
When repossession can happen will vary by individual contract; review your contract to determine when your period will be considered late and if there is a grace period.
What will happen:
As long as it does not breach the peace, your lender or creditor may repossess or disable the vehicle on your property without a court order.
State code:
IDAHO
When repossession can happen:
Once you miss a payment (or default on your loan), a notice will be sent to you that gives you 10 days to make your payments current. If you do not make all payments and associated fees within that time, repossession can happen.
What will happen:
As long as it does not breach the peace, your lender or creditor can disable or repossess your car on your property without a court order. They can also obtain a court order or other legal documents that allow them to repossess if necessary.
State code:
ILLINOIS
When repossession can happen:
After you miss one payment/default on your loan, the titleholder may repossess your vehicle.
What will happen:
As long as there is no breach of the peace, your creditor or lender may disable or repossess your vehicle on public property (like any open area). They can also break into your vehicle in order to repossess but they cannot break into a closed or locked garage. If they cannot repossess the vehicle without a breach of the peace, they may obtain a court order that grants them access to your property and vehicle.
State code:
INDIANA
When repossession can happen:
The titleholder is able to repossess your vehicle once you default on the loan. This could mean missing payments, or it could also mean that you aren’t meeting another requirement of the loan, like having the vehicle insured. Your loan contract should state details on what requirements you must meet to avoid your car being repossessed.
What will happen:
As long as there is not a breach of the peace, your car can be repossessed or disabled on your property. Before your car is repossessed, the person who is repossessing the vehicle must notify the local sheriff’s office beforehand or within two hours of repossessing and providing all of the details.
State code:
Indiana Code 26-1-9.1 et. seq.
IOWA
When repossession can happen:
In order for repossession to take place, you must be more than 10 days late on a loan payment or violate the terms or your contract in another way. The titleholder (or lessor) will serve you a “right to cure” notice that gives you 20 days to make up for the missed payments or correct another violation on your contract before they repossess.
A notice is not required every time you’re late on a payment, but it must be served to you within the last year (365 days). This means that if you’re been late on a payment within the last year and received this notice, the state doesn’t require the titleholder to send another notice.
What will happen:
As long as there is not a breach of the peace, your vehicle can be repossessed or disabled on your property. The titleholder may also pursue legal action to get a court order to repossess the vehicle.
State code:
KANSAS
When repossession can happen:
If you are late on a payment for 10 days or more, the creditor must provide you with a “right to cure” notice. This notice will detail how long you have to get up to date on all your payments before repossession can happen.
What will happen:
As long as there is not a breach of the peace, your vehicle can be repossessed or disabled on your property without a court order or legal notice. In addition, the creditor can get legal documentation in order to repossess the vehicle on your property.
State code:
KENTUCKY
When repossession can happen:
When you miss a payment or default on a loan, see your contract to review the terms of your agreement. The contract should detail the number of payments you can miss before you’re at risk for repossession.
What will happen:
If there is no breach of the peace, your vehicle may be repossessed or disabled on your property without a court order. The titleholder may also get the legal documentation to grant them permission to repossess your car.
State code:
LOUISIANA
When repossession can happen:
Once you miss a payment or default on your contract, the details of your contract should lay out how late you’re able to be on payments. A notice of the right to repossess your vehicle must be sent to you beforehand.
What will happen:
As long as there is no breach of the peace, the titleholder or lender can repossess or disable your vehicle on your property. Additionally, they can obtain a court order to repossess your vehicle on your property.
State code:
MAINE
When repossession can happen:
After your payment is 10 days late, the secured party will send you a “right to cure” notice stating the amount you must pay to bring your loan or lease current and the required payment date. If you miss that date, the creditor may repossess.
The titleholder is only required to send this notice once in a one-year time period. Thus, if you’ve been late on payments within the last year and have already received a “right to cure” notice, the titleholder may proceed with repossession without sending additional notices for future late payments.
What will happen:
The titleholder may repossess or disable your vehicle on your property without a court order, provided it can be done without breach of the peace. Otherwise, it may pursue legal documents granting access to your property for repossession.
State code:
MARYLAND
When repossession can happen:
After one missed payment. There are various laws regarding auto loans and repossessions in Maryland; depending on your contract, the titleholder may need to issue a discretionary notice at least 10 days before repossessing the vehicle.
What will happen:
The titleholder may repossess or disable the vehicle on your property without a court order, provided it can do so without a breach of the peace. If you do not cooperate with the repossession, the titleholder may obtain a court order granting permission to access your property and repossess the vehicle. Depending on your contract, the titleholder may be required to send you a notice via registered mail within 5 days after the repossession and/or retain the vehicle for 15 days after repossession, so you have a chance to bring your loan current and reinstate your contract.
State code:
MASSACHUSETTS
When repossession can happen:
Your creditor must send you a notice 10 days after a missed payment notifying you of the default. You will have 21 days from the date of the notice to bring your payments current. The notice will state the amount you owe to reinstate your contract and the due date. Once you receive three or more of these notices for nonpayment or default, even if you’ve met their payment dates, the creditor is no longer required to continue sending them and may proceed with repossession after another missed payment.
What will happen:
The creditor may repossess the vehicle on private or public property, provided it does not breach the peace.
State code:
MICHIGAN
When repossession can happen:
Once you default on your contract; see your loan or lease contract to determine what constitutes defaulting on your loan.
What will happen:
Michigan does not require creditors to notify you prior to repossessing your vehicle. Upon default, a creditor may repossess or disable your vehicle on your property, provided it does not breach the peace.
State code:
MINNESOTA
When repossession can happen:
As soon as your payment is late, meaning as early as one day past the grace period.
What will happen:
The creditor can disable or repossess the vehicle on your property without a court order if it does not cause a breach of the peace.
State code:
MISSISSIPPI
When repossession can happen:
Once you default on your contract; your contract will have details regarding what constitutes default, such as grace periods allowed before a payment is officially late.
What will happen:
The titleholder may disable or repossess your vehicle on your property if it can do so without breaching the peace. Alternatively, it may pursue a court order granting access to your property for the purpose of repossession.
State code:
MISSOURI
When repossession can happen:
Once your payment is at least 10 days past due, the creditor must send you a “right to cure” notice stating how much you need to pay to bring your account current and provide a due date. It must give you at least 20 days to bring your account current before it can proceed with repossession.
What will happen:
The creditor may disable or repossess the vehicle on your property, as long as it does not breach the peace. Otherwise, it may secure a court order to repossess the vehicle.
State code:
Section 400.9-101, et al
MONTANA
When repossession can happen:
As soon as you default on your loan, which may mean missing one payment; refer to your contract for details on what is considered defaulting on your loan.
What will happen:
If you do not live on a reservation, the creditor can repossess or disable the vehicle on your property without a court order, provided it does not breach the peace. If you do live on a reservation, the creditor must have a court order to repossess the vehicle on the reservation. However, it may wait for you to drive the vehicle off the reservation and repossess it without a court order from a parking lot while you’re in a store.
State code:
MCA 30-9A
NEBRASKA
When repossession can happen:
As soon as you miss a payment, the creditor can send a “right to cure” notice giving the amount owed and a due date. The creditor must wait at least 20 days after the right to cure notice before it can begin the repossession process.
What will happen:
The creditor may repossess or disable the vehicle on your property without a court order, provided it can do so without a breach of the peace.
State code:
NEVADA
When repossession can happen:
Your payment must be at least 30 days past due before the creditor can repossess your vehicle.
What will happen:
The creditor may disable or repossess your vehicle on your private property without a court order unless it causes a breach of the peace.
State code:
NEW HAMPSHIRE
When repossession can happen:
Your payment must be at least 10 days late or later, depending on your individual contract.
What will happen:
The creditor may disable or repossess the vehicle on your property without a court order if it can do so without breaching the peace.
State code:
NEW JERSEY
When repossession can happen:
Once you default on your loan; see your specific contract for details on your grace period and when your contract will be considered in default.
What will happen:
The vehicle can be repossessed or disabled on your property without a court order, provided there is no breach of the peace.
State code:
NEW MEXICO
When repossession can happen:
As soon as you default on your loan; see your contract for details on your grace period and when the contract is considered in default.
What will happen:
The titleholder may disable or repossess the vehicle on your property without a court order, as long as it does not breach the peace.
State code:
NEW YORK
When repossession can happen:
Once you default on your contract; see your contract for your grace period and when your account is considered in default.
What will happen:
The creditor may disable or repossess your vehicle on your property without a court order if it can do so without breaching the peace.
State code:
NORTH CAROLINA
When repossession can happen:
Any time after you default on your contract; grace periods vary by individual contract. See your contract for specifics on when your payments will be considered late and your loan or lease in default.
What will happen:
The creditor can repossess or disable the vehicle on your property. North Carolina does not require a court order without a breach of the peace.
State code:
NORTH DAKOTA
When repossession can happen:
As early as one missed payment; see your contract for your grace period and when you will be considered in default.
What will happen:
The creditor can disable or repossess the vehicle on your property without a court order, provided it does not breach the peace.
State code:
OHIO
When repossession can happen:
Once you default on your payments. Your individual contract will specify what qualifies as defaulting.
What will happen:
The creditor may disable or repossess the car on your property, provided there is no breach of the peace.
State code:
OKLAHOMA
When repossession can happen:
As soon as you default on your contract; grace periods will vary by individual contract.
What will happen:
Your vehicle may be disabled or repossessed on your property without a court order, provided there is no breach of the peace.
State code:
OREGON
When repossession can happen:
Once you default on your contract; see your contract for your grace period and what constitutes defaulting on your loan or lease.
What will happen:
Your vehicle can be repossessed or disabled on your property without a court order, provided there is no breach of the peace.
State code:
PENNSYLVANIA
When repossession can happen:
Once you fall behind on payments; your specific contract will determine though how far behind you can fall before repossession.
What will happen:
The creditor may repossess or disable the vehicle on your property without a court order if it can do so without breaching the peace.
State code:
RHODE ISLAND
When repossession can happen:
Once your payment is 10 days late, the creditor must send you a notice stating how much is due to bring your account current and when the payment is due. If you do not make the required payment by the due date, the creditor can proceed with repossessing your car.
You are only entitled to one late payment notice every 12 months; if you’ve previously been behind on a payment and received a notice, the creditor is not required to send you another one if you are late again. At that point, the company may proceed with repossession without notice.
What will happen:
The secured party can disable or repossess the vehicle on your property without a court order, provided it does not cause a breach of the peace.
State code:
SOUTH CAROLINA
When repossession can happen:
Once you fall behind on your payments, depending on your contract, the creditor may be required to send you a “Notice of Right to Cure,” allowing you 20 days to make your payments current. If you do not bring your payments current by the due date, the creditor may repossess the vehicle.
What will happen:
The creditor may disable or repossess the vehicle on your property without a court order if it can do so without breaching the peace.
State code:
SOUTH DAKOTA
When repossession can happen:
Once you default on your payments, the creditor may be required to send you a notice before repossessing or selling the vehicle. See your individual contract for specifics about any notices your creditor is required to provide to you.
What will happen:
The creditor may disable or repossess the vehicle on your property without a court order, provided it can do so without a breach of the peace.
State code:
TENNESSEE
When repossession can happen:
Once you default on your contract; see your loan or lease documents for information on grace periods.
What will happen:
The lender may disable or repossess the vehicle on your property without a court order, as long as it doesn’t cause a breach of the peace.
State code:
TEXAS
When repossession can happen:
As soon as you default on your payments; see your loan or lease for details on your grace period and when a payment will be considered late.
What will happen:
The secured party can disable or repossess the vehicle without a court order if it can do so without breaching the peace.
State code:
The State of Texas generally adopts the provisions of the Uniform Commercial Code (Title 9) in secured transactions. Bus & Comm C. 9-101 et seq.
UTAH
When repossession can happen:
Any time after you default on your payments
What will happen:
The secured party may disable or repossess the vehicle on your property without a court order, provided it does not breach the peace.
State code:
Title 70A, Chapt. 9 of Utah Code
VERMONT
When repossession can happen:
It depends on your individual contract, but repossession can often begin as soon as you miss a payment.
What will happen:
The secured party may repossess or disable the vehicle on your property without a court order if it can do so without breaching the peace.
State code:
VIRGINIA
When repossession can happen:
You must be at least 10 days late on your payment. The creditor does not have to send you notice before repossession.
What will happen:
The vehicle can be disabled or repossessed on your property without a court order, as long as there is no breach of the peace.
State code:
WASHINGTON
When repossession can happen:
Once you default on your loan or lease; see your specific contract for your grace period and when your payment will be considered late. The creditor does not have to notify you before repossessing the vehicle.
What will happen:
The creditor can repossess or disable the vehicle on your property without a court order, as long as there is no breach of the peace.
State code:
WEST VIRGINIA
When repossession can happen:
Once your payment is five days late, the creditor may send you notice of repossession, depending on whether or not your contract requires it to do so. Otherwise, the company may begin the repossession process.
What will happen:
The secured party may disable or repossess the vehicle on your property if it can do so without breaching the peace.
State code:
WISCONSIN
When repossession can happen:
It depends on your individual contract, but often, your payment must be at least 10 days late. The creditor must send you a “right to cure” notice and wait at least 15 days before repossessing your car.
What will happen:
The secured party may disable or repossess your car on your property without a court order, as long as it doesn’t cause a breach of the peace.
State code:
Sec.409.501 et seq.
WYOMING
When repossession can happen:
As soon as you default on your loan; the creditor does not have to notify you prior to repossessing your vehicle.
What will happen:
The secured party may disable or repossess your car on your property without a court order, provided it does not breach the peace.
State code:
