If my car is repossessed, do I have to pay off the entire loan balance to get it back?

In most states, you have to pay the entire car loan balance in order to get your car back after repossession. But you might have other options.

Get debt relief now. We've helped 205 clients find attorneys today.

There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

Whether you have to pay the entire balance of your car loan to get your car back after repossession depends on where you live and the terms of your car loan agreement.

Redeeming the Car

In most states, you have to pay off the entire loan to get your car back after repossession, called "redeeming" the car. The balance you would need to pay to redeem the vehicle might include extra fees and charges, including repossession and storage fees, and even attorneys' fees.

The Right to Reinstate the Loan

You might also have a right to reinstate the car loan. To reinstate the car loan, you bring the loan current by making up all of the past due payments, including applicable fees and late charges, in one lump sum. Reinstatement could be an option for you if you can't pay the car loan off in full. You can reinstate the car loan only if your state's law allows it or if your loan agreement specifically states that you have this right.

Working Out Something With the Bank

If neither reinstatement nor redemption is an option for you, there's no harm in approaching the bank to negotiate a different resolution, such as a partial reinstatement and a new payment plan. The bank might even refinance the car loan if that's viable for you.

Bankruptcy to Get the Car Back

If the creditor isn't willing to work with you, then bankruptcy might be an option, depending on your financial circumstances. You might be able to get the car back if you file Chapter 7 bankruptcy or Chapter 13 bankruptcy. To learn more, see My Car Was Repossessed, Can Chapter 7 Help? and Can I Get My Car Back If It Was Repossessed Right Before Chapter 13?

However, filing for bankruptcy just to get a car back is rarely a good financial decision.

Getting Help

For more information about car repossession laws in your state, consult with a local debt relief attorney. If you want to learn more about filing for bankruptcy, talk to a bankruptcy lawyer.

Get Professional Help
Get debt relief now.
We've helped 205 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please add a valid Email
Phone Number is required
Please add a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Description is required
By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you