Repossession Laws in Maryland

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

In Maryland, your lender can repossess your car as soon as you're in default on the loan. This usually happens when you miss payments, but it can also happen if you break other terms in your contract, like not keeping the car insured.

Will I Be Notified Before the Repossession? How?

Maryland law doesn’t require lenders to give you a warning before repossessing your car. That said, some lenders choose to send a notice anyway. If they do, they must send it at least 10 days before taking the car. This notice usually goes to both you and any co-signer and gives a date after which the repossession may happen.

If the lender doesn’t send this notice, they generally can’t charge you for the costs of repossession, like towing or storage.

Otherwise, you likely won’t get any advance warning. Maryland law allows what’s called a self-help repossession. This means the lender can take the car without going to court and without telling you exactly when or where it will happen.

How Can I Prevent a Repossession?

One way to stop a repossession is to catch up on your missed payments. Check your loan documents or any letters from the lender to see how much time you have. If you're unsure, call your loan servicer. Many people prefer to make late payments by phone since mail and online systems can cause delays.

If you’re going through a rough patch, reach out to your lender right away. Some may offer a short-term pause on payments (called forbearance) or adjust your loan terms.

Another option some people explore is filing for Chapter 7 bankruptcy. When you file, a legal protection called the automatic stay kicks in. This temporarily stops most collection efforts — including car repossession — while the bankruptcy is in progress.

Depending on your situation, you might be able to keep your car or give it up and have the loan erased. If your case is straightforward, Upsolve’s free tool can help you file for Chapter 7 bankruptcy on your own.

What Can Repo Companies in Maryland Do? 

In Maryland, repo companies are treated like specialized debt collectors, so they must have a valid collection agency license. The tow truck driver may not carry a copy, but you can ask for the name and contact info of the company to request proof of the license later.

Repo agents are allowed to take your car from public streets or even your driveway. But they can't use force, break the law, or cause a scene. This is known as "breaching the peace."

If you're there when the repo happens, you can calmly ask the agent to leave your property. If they refuse, a court might see that as a violation of your rights. Still, it’s important not to physically block the tow truck or confront the agent. That could lead to dangerous situations or even criminal charges.

What About the Personal Property in My Car? 

The repo company and your lender aren’t allowed to keep or sell any personal belongings you left inside your car. If your vehicle gets repossessed, call the repo company or your lender right away to ask how you can get your items back.

If you think repossession might happen soon, it’s a good idea to remove all your personal belongings ahead of time. That way, you won’t have to deal with the added stress of trying to recover them later.

What Happens After a Repossession in Maryland?

Within five days after your car is repossessed, the lender must send you a written notice that explains your right to redeem the vehicle, tells you where it’s being stored, and provides payment instructions. The lender must hold the car for at least 15 days to give you a chance to get it back.

If the lender decides to sell the car, they must send you a second notice at least 10 days before the sale. This notice includes the date, time, and location of the public auction, or the earliest date a private sale could happen. 

What Happens When the Car Is Sold

What happens next depends on how much of your loan you’ve paid.

If you’ve paid more than 60% of the loan or purchase price — and you haven’t signed away your rights — Maryland law requires the lender to start the sale process within 90 days after the repossession. This rule helps protect your right to any extra money if the car sells for more than what you owe, including repossession costs.

If you’ve paid less than 60%, the lender can choose to keep the car instead of selling it, but they must send you a written notice first. You’ll have 30 days to object in writing if you disagree. If the lender keeps the car and you don’t object, your loan is usually considered settled. In most cases, you won’t owe anything more.

No matter which situation applies, if the car is sold, the lender must handle the sale in a commercially reasonable way — meaning they must try to get a fair market price.

Do I Still Owe After a Repossession in Maryland? 

If the sale doesn’t cover your full loan balance plus repossession-related costs, you may still owe the difference. This is called a deficiency balance. You’ll get a final notice showing your unpaid loan amount plus repossession-related fees like towing, storage, and sometimes a prepayment penalty. If the lender doesn’t send this notice, they usually can’t collect the unpaid amount.

To avoid these extra costs, some people choose to voluntarily surrender the car, meaning they return it before it’s taken. This doesn’t wipe out the debt, but it may help reduce the total you owe by avoiding some repossession costs.

If there’s a deficiency balance, the lender may try to collect it by taking you to court and asking for a deficiency judgment. If the court agrees, the lender may use collection methods like wage garnishment.

Many people in this situation consider filing Chapter 7 bankruptcy to eliminate the debt. Upsolve’s free filing tool may be able to help you file on your own.

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

In some cases, you may be able to get your car back after a repossession. But it can be difficult. State law requires the lender to send you a written notice within five days of the repossession. 

This notice must explain:

• Your right to get the car back (called redeeming the vehicle)

• Whether you may still owe money after the sale

• Where the car is being stored

• Where to send payments if you want to redeem it

Once the notice is sent, the lender must hold your car for at least 15 days to give you a chance to take action.

To get the car back, you’ll usually need to reinstate the loan. This means catching up on missed payments, paying late fees, and covering the lender’s repossession costs. In some cases, you may have to pay the full loan balance, especially if the car was repossessed within the last 18 months or there was fraud or serious misuse involved.

While the law gives you this right, many people find it hard to pull together that much money in such a short time, especially while dealing with the financial issues that led to repossession. 

If you’re not sure what’s possible in your situation, consider contacting your lender or setting up a free consultation with a bankruptcy attorney or legal aid organization to better understand your options.

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

• Maryland Department of Labor: Info about repossessions, including how to file a complaint for unlawful repossession and licensing requirements

• Maryland Court Help Center: Free limited legal services for those not represented by a lawyer

• Maryland Legal Aid: Free legal services to low-income people in Maryland

• Legal Services | 211 Maryland: Connect to free or low cost legal help

• Maryland Repossession Law