Repossession Laws in Colorado

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

Missing just one car payment in Colorado can put you at risk of a repossession, depending on your loan agreement. Some lenders may offer a short grace period, but many consider you in default as soon as you’re late or miss a payment. In some cases, they may also count a partial payment or a missed insurance payment as a default. It depends on the details of your contract.

⌛ Once you've been in default for 10 days, your lender can move forward with the repossession process. But before they take your car, they usually have to send you a written notice that gives you a chance to catch up.

Will I Be Notified Before the Repossession? How?

In most cases, you’ll be notified before your car is repossessed. If you’ve been in default for at least 10 days, your lender must send you a notice of default, also called a right-to-cure notice. 

✉️ This letter explains that you're behind on your loan and gives you 20 days to catch up. If you pay the full amount due in time, you can avoid repossession. If you don’t, your lender can repossess the car starting on day 21.

Colorado law only requires lenders to send one right-to-cure notice every 12 months. If you’ve already received one within the past year and fall behind again, your lender can repossess the car without sending another notice. 

How Can I Prevent a Repossession?

If you know you’re going to be late or short on a car payment, reach out to your lender as soon as possible. Many lenders are willing to work with you before the loan goes into default. You might be able to adjust your payment schedule or set up a short-term plan to avoid falling further behind. You’ll usually have more options if you contact them early.

🚙 Some people choose to voluntarily repossess the car, which means returning it to the lender instead of waiting for them to take it. This doesn’t erase the loan, but it may lower some of the added costs and give you a bit more control over how things unfold.

If your financial situation feels overwhelming, filing Chapter 7 bankruptcy could offer a fresh start. When you file, a legal protection called the automatic stay goes into effect. This puts a temporary stop to most collection efforts, including repossession, while the bankruptcy is in progress. This can give you time to figure out a way forward.

✨ If you're thinking about bankruptcy, Upsolve may be able to help. Our free online tool can help you file on your own without a lawyer. It only takes a few minutes to see if you qualify.

What Can Repo Companies in Colorado Do? 

Repossession companies in Colorado have to follow specific rules when taking your car. They can’t break the law or cause a disturbance during the process. This is called breaching the peace.

Breaching the peace can include:

• Using threats, violence, or making a scene

• Damaging property or forcing their way into a locked area

• Lying about who they are or tricking you into leaving your car

• Shutting off your car remotely while you're driving or pulled over

Repo agents can enter places like your driveway or an unlocked garage.

You do have the right to object to a repossession, as long as you do it peacefully. But if you try to block the tow truck or physically stop the repo, you could face criminal charges or end up with extra legal costs.

In Colorado, repossession companies must be bonded and registered with the state attorney general. They also have to notify local police within one hour of taking the car. 

👉 You can contact the Attorney General’s Consumer Credit Unit to check a company’s license or file a complaint if something feels off.

What About the Personal Property in My Car?

If you think your car might be repossessed, it’s a good idea to remove any personal belongings ahead of time. This can save you the hassle of trying to get them back later.

If your car has already been repossessed and you left items inside, you have the right to get your personal property back. Repo companies can’t legally keep or sell your belongings, and many will let you schedule a time to collect them. You’ll likely need to contact the lender or the repossession company directly to find out how to arrange pickup.

Keep in mind that anything permanently attached to the car — like custom rims, built-in speakers, or a factory-installed GPS — usually stays with the vehicle and is considered part of the car.

What Happens After a Repossession in Colorado? 

After your car is repossessed, your lender can sell it, lease it, or keep it. They have to send you a written notice explaining what they plan to do. Colorado law requires them to give reasonable notice before taking further action, and many lenders provide at least 10 days' notice.

📃 If the lender plans to sell the car at a public auction, the notice must include:

• The date, time, and location of the sale

• A phone number and address where you can ask for more information

• A statement explaining your right to attend and bid at the auction

If the lender plans a private sale or wants to keep or lease the car, the notice must include:

• A cutoff date (they can’t take any action before this date)

• Contact information so you can follow up with questions

No matter what your lender decides to do with the car, they must make a fair effort to sell it for a reasonable price. The money from the sale goes toward your loan balance and any repossession-related costs. If the sale doesn’t cover the full amount you owe, you’re still responsible for paying the remaining balance.

Do I Still Owe After a Repossession in Colorado? 

Most people do still owe money after a repossession. After a repossession, your lender can add extra costs to your loan balance, such as towing, storage, administrative fees, and even legal costs. If you ask, they must give you an itemized list showing how those charges were calculated.

Since repossessed cars often sell for less than what is owed, many people are left with a deficiency balance — the remaining amount after the sale. Your lender can try to collect this balance, and if you don’t pay, they may sue you. If they win, they might be able to garnish your wages, which means taking money directly from your paycheck until the debt is paid off.

If you owe a deficiency balance and have a lot of other overwhelming debt, Chapter 7 bankruptcy might be able to help. It can wipe out debts from things like unpaid car loans, credit cards, or medical bills and give you a clean slate. Use Upsolve’s filing tool to get started today.

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

If you want to get your car back after a repossession, you’ll need to redeem your auto loan. This means paying the full balance of the loan, not just the missed payments. You’ll also have to cover any interest, late fees, and repossession-related costs.

Your lender’s notice must include a phone number and mailing address where you can ask for the exact amount to redeem the car. You have to pay the full amount before the sale or cutoff date listed in the notice.

That said, coming up with that much money all at once can be very difficult. If you’re behind on your loan, it’s likely because money is already tight. And once the car is sold, it’s almost impossible to get it back.

If you’re facing repossession or trying to understand your options after a repossession, consider setting up a free consultation with a bankruptcy attorney. They can help you review your situation and talk through possible next steps.

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

• Colorado Legal Services offers free legal assistance to low-income Coloradans and seniors.

• Colorado Department of Human Services protects and promotes the rights of Colorado’s older adults by helping them address legal issues.

• The Denver Bar Association’s Metro Volunteer Lawyers program offers free Chapter 7 bankruptcy help to low-income people who qualify.

• Visit the Colorado attorney general’s office to file a complaint against a repossession company.

🏛️ Colorado’s repossession laws are mainly in Title 5, Article 5 for consumer loans and Title 4, Article 9 for general rules on secured property.