Pre-Repossession Notice Requirements
Many states require written notice before repossessing. The notice must tell you: the amount owed, the deadline to cure, and consequences if you do not cure. The notice period is typically 10-30 days.
What You Must Pay
The cure amount is missed payments plus late fees and collection costs. It is NOT the full loan balance. For example: 3 missed payments of $400 with $50 late fees = $1,350 cure amount.
After Repossession -- Right to Redeem
You may have the right to redeem by paying the full balance plus repo and storage costs. Some states allow reinstatement (curing just past-due amounts) after repo. The window is short -- until the vehicle is sold.
Frequently Asked Questions
Can they repossess without warning?
In states without mandatory notice, yes. But the loan agreement itself may require notice. In states with mandatory notice, repossession without it may be wrongful.
What if I cured but they repossessed anyway?
This is wrongful repossession. Contact a consumer protection attorney immediately. You may have claims for conversion, breach of contract, and UCC violations.
Can Chapter 13 cure an auto default?
Yes. Chapter 13 cures the default and keeps the vehicle. If the loan is more than 910 days old, you can reduce the balance to the car's value (cramdown).
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