Repossession Laws in Arkansas

How Many Payments Can I Miss Without Risking a Repossession in Arkansas?

In Arkansas, your lender can repossess your vehicle as soon as you default on the loan. 

📄 What counts as default depends on the terms of your loan agreement. If your contract doesn’t specify, a missed or even partial payment could trigger default immediately.

Will I Be Notified Before the Repossession? How?

Arkansas law doesn’t require lenders to give advance notice before repossessing your car. That said, some lenders may choose to send a notice or try to work out a solution first, since repossessions are costly for them, too. 

☝️ If you do receive a warning or notice from your lender, don’t ignore it. This may be your last chance to avoid repossession.

How Can I Prevent a Repossession?

If you’re behind on car payments, it’s a good idea to reach out to your lender as soon as possible. Many lenders are open to short-term payment plans that let you make up missed payments and avoid repossession. If you're still current but worried you might fall behind, taking action early can help protect your car.

Unlike some states, Arkansas doesn’t require lenders to give you a chance to resolve missed payments before repossessing your vehicle.

If you’re overwhelmed by debt and think repossession is likely, filing Chapter 7 bankruptcy may offer some relief. Bankruptcy triggers something called the automatic stay, which temporarily stops most collection efforts — including repossession —  while you figure out your next steps.

✨ Upsolve offers a free online tool that helps people file for Chapter 7 bankruptcy on their own. You can see if you’re eligible to use it by answering a few quick questions.

What Can Repo Companies in Arkansas Do? 

In Arkansas, a repo company can legally take your car from public or private property, including your driveway or a parking lot, as long as they don’t breach the peace. This means they can’t use force, threats, or break into locked or secured areas to get the vehicle.

Lenders aren’t required to notify you before repossessing your car, and the person taking the vehicle doesn’t need a special license or have to show ID. If you’re unsure whether the repossession is legitimate, you can contact your lender directly to confirm that they authorized it.

If you're present when the repossession happens, try to stay calm and avoid any confrontation. Physically trying to stop it could lead to added costs or even legal trouble.

What About the Personal Property in My Car? 

If you think there’s a chance your car could be repossessed, it’s smart to take out anything important ahead of time. That way, you won’t have to deal with the hassle of tracking down your stuff later.

If your car does get repossessed, you still have the right to get your personal belongings back. In Arkansas, towing and storage companies can’t keep or charge you for certain personal items, like your phone, wallet, medications, and legal documents. These must be returned to you at no cost.

If you haven’t been contacted about how to get your belongings back, contact your lender or the repossession company. They should be able to tell you how and when you can collect your personal items.

What Happens After a Repossession in Arkansas? 

After your lender repossesses your vehicle, they can sell it through a private sale or public auction. Whatever method they choose, the sale must be commercially reasonable. 

💡 That means the lender has to make a good-faith effort to get a fair price for the car. 

They can also choose to lease or keep the car, but they must act within a reasonable time. If there’s a delay that lowers the car’s value or leads to high storage costs, that could be considered unreasonable.

Your lender must send you a written notice before selling the car. This notice must include:

• Whether the car will be sold privately or at a public auction

• The time and place of the sale (if it’s a public auction)

• A phone number you can call for more details

If it’s a public auction, you’re allowed to attend and bid on your car.

Once the car is sold, the lender first uses the sale money toward costs related to the repossession and sale, and then toward your remaining loan balance.

If there’s any money left over, that’s called a surplus, and you’re entitled to it. But if the sale doesn’t bring in enough to cover everything you owe, you’ll be responsible for paying the difference.

Do I Still Owe After a Repossession in Arkansas? 

You may still owe money after a car repossession. If your lender sells the car for less than the full amount of your loan and repossession-related expenses, the remaining balance is called a deficiency. This amount can include your unpaid loan balance, plus additional costs like towing, storage, and certain fees. 

✍️ Your lender must send you a written explanation showing how they calculated the amount you owe, along with contact information if you want to request more details.

If you don’t pay the deficiency balance, your lender can take legal action to collect it. If they win in court, they may be able to garnish your wages or use other collection methods to recover the money.

If you're facing repossession and think your car is worth less than what you owe, you might consider voluntarily surrendering the vehicle. While you’d still be responsible for the deficiency balance, you could avoid extra repo-related fees being added to your debt.

Can I Get My Car Back After a Repossession in Arkansas? 

You might be able to get your car back after a repossession. This is called redeeming the car. To do this, you’ll need to pay everything you owe in full — not just the missed payments. That usually includes your remaining loan balance plus any repossession-related costs.

Because it requires a lump-sum payment, redemption can be tough for many people.

The written notice the lender sends before selling the car should include a phone number you can call to find out exactly how much you’d need to pay to redeem the vehicle.

Once the car is sold, you usually can’t get it back.

Where Can I Find More Information About Repossession Laws in Arkansas? 

• Arkansas Law Help: helpful info on vehicle repossession in Arkansas

• Legal Aid of Arkansas: free legal services to low-income Arkansans with civil legal problems.

• Center for Arkansas Legal Services: free legal civil help for low-income Arkansans

Arkansas Repossession Code and Pre-Sale Notice Sample