What Can I Do if My Car Is Repossessed With My Personal Belongings In It?

If your car is repossessed, it’s important to know that your personal belongings are still yours. The repossession company can take the car, but they can’t keep your personal property. You have the legal right to get your belongings back without paying a fee in most cases. In this article, we’ll explain your rights, how to retrieve your items, and what options you have for handling the repossession.

How Does Vehicle Repossession Work?

Most people rely on loans to buy a car because paying the full price upfront isn’t realistic. When you take out a loan, you own the car, but the lender has what’s called a security interest in it. This means they have the legal right to take the car back if you fall behind on payments.

Here’s how it works: When you buy a car with a loan, your name appears on the title as the owner. The lender’s name will also be on the title as a lienholder until you pay off the loan. If you consistently make your payments, there’s no issue. But if you miss payments — or even just one payment in some states — the lender has the right to repossess the vehicle.

Repossession laws vary by state, but generally, lenders don’t need to give you advance notice before taking the car. They often hire repossession companies to collect the vehicle, and this can happen quickly, sometimes without you even knowing it’s coming.

It’s important to understand your rights and your options if you’re worried about repossession. The car may be gone, but that doesn’t mean all hope is lost.

What Happens To Your Personal Belongings When Your Car Is Repossessed?

If your car is repossessed, any personal belongings inside it will be taken along with the vehicle. This is because repo companies focus on retrieving the car as quickly as possible — often in the middle of the night or early in the morning — and they don’t take the time to remove or separate your belongings from the vehicle. This means your loose items, like clothing, documents, or electronics, may end up at the repo lot with your car.

Can You Remove Your Belongings During a Repossession?

If you catch the repo company in the act, you can ask to retrieve your personal items before they take the car. Some repo agents may allow you to do this, but they aren’t legally obligated to let you access the car on the spot. If they refuse, it’s important to remain calm and avoid any confrontations. Getting aggressive could result in charges like breach of the peace, which could complicate your situation further.

Protecting Your Belongings Before Repossession

If you think your car might be repossessed, it’s smart to prepare ahead of time. Avoid leaving sensitive or valuable items in your car, such as:

• Your driver’s license

• Tax paperwork or Social Security card

• Cell phones, laptops, or other devices containing private information

• Jewelry or other hard-to-replace items

Being proactive about removing these items can help protect your privacy and reduce the stress of dealing with a repossession.

What Are Your Rights to Your Personal Belongings After a Repossession?

While the lender or repo company has the right to repossess your car if you have past-due payments, they can’t keep or sell your personal belongings. You have the right to retrieve any loose items that were inside the vehicle when it was repossessed. These can include:

• Clothing

• Tools

• Electronics

• Child car seats

• Other removable personal items

After the repossession, the finance company will usually send you a written notice. This notice will include the contact information for the repo company or storage lot where your car is being held. Once you receive this notice, contact the repo company right away to arrange to collect your belongings. 

They are legally required to give you reasonable access to your items.

What Items Aren’t Considered Personal Belongings?

Items that are permanently attached to the car are usually considered part of the vehicle and may not be returned. This can include things like:

• Aftermarket stereos

• Window tinting

• Tire rims

• Spoilers

• Muffler

• Engine parts

Only loose personal items or items easily removed, such as child car seats, can be retrieved.

Can a Repo Company Make You Pay a Fee To Get Your Items Back?

Usually, no, the repossession company can’t make you pay a collection fee or a storage fee to get your personal belongings back. They also have to be reasonable about arranging a time for you to get your belongings. 

However, note that if you wait several weeks before collecting your items, the repo agency may be able to charge a storage fee. This is why it's important to contact the repo agent immediately after you receive a repossession notice.

What Can You Do if a Repo Company Refuses To Return Your Belongings?

Repo companies are required to return your items and provide reasonable access for you to retrieve them. If they won’t cooperate, you can:

• Contact the lender: Since the lender hired the repossession company, they may be able to step in and resolve the issue. Explain what’s happening and request their assistance.

• File a complaint:

  • Report the repo company to your state attorney general’s office, which can investigate violations of state laws regulating repossession companies.

  • File a complaint with a consumer protection agency, like the Federal Trade Commission (FTC) or a state-level agency, to address unfair or illegal practices.

• Take legal action: If the repo company refuses to return your belongings or damages them, you can sue them in small claims court. Keep all communications and documentation to support your claim.

What Happens After Your Car Is Repossessed?

State laws usually require finance companies to send you a notice of repossession. This notice will tell you how much you currently owe on the car loan, how much it cost them to tow your car away, and the amount of any storage fees they intend to charge you. 

The notice will also tell you how much time you have before they will sell the car. Then, you’ll need to decide on your next steps. You typically have four options:

• Redeem the car by paying off the entire loan, plus any repo fees

• Refinance the loan if the lender allows

• Let the lender sell the car

• File bankruptcy

Redeem the Car

You can redeem your car by paying off the entire balance of the loan in a single lump sum. This includes the remaining balance on your car loan plus any late fees, towing fees, and storage fees.

While this option allows you to get your car back, it can be challenging for many people because of the high cost. It’s essentially paying off the entire loan at once, along with additional fees, which can add up quickly.

Refinance the Loan

Some lenders may allow you to refinance your loan or create a new payment agreement. This option might include:

• Paying any overdue payments (sometimes referred to as "curing" your default)

• Covering the costs of repossession, including towing and storage fees

• Resuming regular monthly payments under a revised plan

If you want to explore a new loan agreement, you’ll need to reach out to your lender quickly. Not all lenders will offer this, but many are willing to work with borrowers who demonstrate a good-faith effort to get back on track.

Let the Lender Sell the Car

If you’re unable or unwilling to redeem or refinance the car, the lender will sell it to recover part of the money you owe. Most repossessed cars are sold at auctions, where buyers don’t have the opportunity to inspect or drive the vehicle beforehand. Because of this, cars sold at auction often sell for less than their market value.

This can result in a deficiency balance, which is the difference between what the car was sold for and the amount you still owe on your loan. You are responsible for paying this remaining balance, which can often be significant.

What Happens If You Can’t Pay the Deficiency?

If you can’t pay the deficiency balance, the lender can sue you in court to recover the money. If the court grants them a deficiency judgment, they can take further actions to collect the debt, such as:

• Garnishing your wages

• Freezing or seizing funds in your bank accounts

• Selling the debt to a collection agency, which may aggressively pursue repayment

A deficiency judgment can also damage your credit score and remain on your credit report for up to 10 years, making it harder to qualify for future loans.

File Bankruptcy

Filing for bankruptcy can be a powerful option if you’re struggling to manage the financial fallout of a repossession. Bankruptcy can help in two key ways:

Before Repossession: How Bankruptcy Can Help

If you’re behind on payments and worried about your car being repossessed, filing for bankruptcy can stop repossession efforts immediately. When you file bankruptcy, an automatic stay goes into effect. This is a court order that temporarily prevents creditors, including your car lender, from taking any collection actions against you.

The automatic stay gives you breathing room to explore your options, such as catching up on payments, negotiating with your lender, or deciding to let the car go. However, it’s important to act quickly because the lender can request the court to lift the stay and proceed with repossession if no agreement is reached.

After Repossession: How Bankruptcy Can Help

If your car has already been repossessed, bankruptcy can help protect you from the financial burden of a deficiency balance. When you file for Chapter 7 or Chapter 13 bankruptcy, the deficiency balance is treated as unsecured debt, which can often be discharged along with your other unsecured debts like credit card bills, medical debt, and personal loans.

Depending on the timing of your bankruptcy filing, you may even be able to get your car back. For example, if you file shortly after the repossession, the lender may be required to return the vehicle to you, provided you can make payments or negotiate terms.