Repossession Laws in Minnesota

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

In Minnesota, your lender can legally repossess your car if you miss even one payment, unless your loan agreement gives you a grace period or says otherwise. If you miss a payment, you’re technically in default, which gives the lender the right to start the repossession process.

That said, most lenders don’t rush to repossess a vehicle after a single missed payment. 

🗓️ Repossession is costly, so many lenders wait until you’re at least 60–90 days behind on payments before they take action. But this timeline isn’t guaranteed. It depends on the specific terms in your loan agreement.

💡 There’s also a special rule to know about, called the Cobb notice. If your lender has let you pay late in the past without repossessing the car, they may be required to send you a written warning before repossessing. We’ll explain Cobb notices more below.

Will I Be Notified Before the Repossession? How?

In most cases, lenders aren’t required to give you advance notice before repossessing your car under Minnesota law. But there’s one important exception. 

👉 If your lender has accepted a late payment more than once in the past without repossessing your vehicle, they must send you a Cobb notice before trying to repossess it.

A Cobb notice is a written warning that tells you the lender won’t accept late payments anymore and may repossess your car if you don’t follow the loan terms going forward. If the lender accepts more late payments after sending the notice, they must send another notice before attempting repossession.

How Can I Prevent a Repossession?

If you’ve fallen behind on your car payments but your vehicle hasn’t been repossessed yet, you still have options.

One of the most helpful things you can do is contact your lender as soon as possible. Many lenders are willing to work with borrowers who are up front about their situation. You may be able to set up a payment plan, request a short-term deferment, or even modify or refinance your loan. 

If you're sure you can’t afford the loan long term, you might consider voluntary repossession. This means returning the vehicle to the lender instead of waiting for them to take it. It puts you in control and may help you avoid extra fees and added stress.

🚗 Minnesota law offers added protection for small auto loans. If your loan was $8,100 or less, and the lender repossesses or accepts the vehicle back voluntarily, they can’t come after you for the remaining balance. 

Another option for preventing a repossession is Chapter 7 bankruptcy. Once you file, an automatic stay takes place, which temporarily stops most collection efforts, including repossession. This gives you time to figure out your next steps.

✨ If you're thinking about Chapter 7 bankruptcy, Upsolve’s free filing tool can guide you through the process without hiring a lawyer. It only takes a few minutes to see if you qualify.

What Can Repo Companies in Minnesota Do? 

In Minnesota, repo companies aren’t required to give you notice before taking your vehicle. But that doesn’t mean they can do it however they want.

✅ They’re allowed to take your car from public areas or unlocked private property, like an open driveway. 

❌ They can’t enter a locked garage or other secured areas without a court order. They also can’t use force, threats, or deception during repossession. This is called breaching the peace, and it’s against the law.

It’s important to know that this goes both ways. You also can’t use force or threats to stop a repossession, even if you feel it’s unfair. If a repo agent is damaging property or acting aggressively, the safest thing to do is to step away and call the police. It could put you at legal risk if you try to intervene.

What About the Personal Property in My Car? 

If you’ve missed one or more car payments, it's a good idea to remove your personal items from the vehicle right away. That way, if the car is repossessed without warning, you won’t be scrambling to get your belongings back.

Repossession companies are required to let you collect your personal property from the vehicle after it’s been taken. But they can charge a storage fee until you come pick it up. 

If you haven’t heard from the repo company about how to get your items back, you can contact the lender to find out who to call.

Keep in mind that you’re only allowed to retrieve items that aren’t permanently attached to the car. Anything that’s considered part of the vehicle — like a custom stereo system or upgraded rims — usually stays with the car.

What Happens After a Repossession in Minnesota? 

After your car is repossessed, your lender has a few options, but they must send you a written notice before taking the next steps.

Most lenders choose to sell the car, either at a public auction or private sale. 

📃 Prior to doing so, they must send a notice that tells you:

• The time and place of the sale (or when it will be listed)

• How to redeem the vehicle (which means buying it back before the sale by paying what you owe)

• A phone number to get your payoff amount

• Whether you might still owe money after the sale

The sale must be commercially reasonable, meaning the lender has to make a fair effort to sell the car for a reasonable price. They can’t just give it away or sell it for far less than it’s worth.

In some cases, the lender might want to keep the car instead of selling it. Minnesota law says they can’t do this unless you agree in writing after the repossession. And they can't keep the car just to reduce your balance. They can only do it if it's in full satisfaction of the debt, and you’ve agreed.

🗓️ If you’ve already paid 60% or more of the loan, the lender usually must sell the car within 90 days, unless you agree otherwise.

Do I Still Owe After a Repossession in Minnesota? 

Many people in Minnesota still owe money after their car is repossessed. When a lender repossesses your car, they usually sell it to recover part of what you owe on the loan. But if the sale doesn't cover the full loan balance (including any fees or repossession costs), the remaining amount is called a deficiency balance.

Unless the lender decides to forgive the debt or the total loan is $8,100 or less, you’ll be responsible for paying this balance. This is true even if you gave the car back voluntarily.

If you don’t pay the deficiency balance, the lender might sue you to collect it. If they win a court judgment, they may be able to garnish your wages or freeze money in your bank account. 

It can be difficult to repay a deficiency balance, especially if you’re dealing with lots of other debt. In this case, it’s worth exploring debt relief options, including Chapter 7 bankruptcy. If you’re eligible, Upsolve’s free filing tool can help you file your case without hiring an attorney. 

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

It is possible to get your car back after a repossession, but it can be challenging. One option is to redeem the vehicle. 

💰 This usually means paying the full remaining loan balance along with any repossession costs, storage fees, and other charges. For many people, coming up with that much money all at once is difficult.

If you're thinking about redeeming the car, it's important to act quickly. Lenders often move fast to sell repossessed vehicles, and once the car is sold, it’s usually too late to get it back.

You could also consider setting up a free consultation with a bankruptcy attorney to learn more about your options. 

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

If you're dealing with a repossession or worried about one, here are some trusted resources in Minnesota that can help you understand your rights and get legal support:

• LawHelpMN.org: Free legal information and resources for Minnesotans, including a fact sheet on car repossession

• MNLegalAdvice.org: Free legal advice from volunteer attorneys for eligible Minnesota residents

• Justice North Legal Aid: Free legal help for civil legal issues if you live in Northern Minnesota

• Central Minnesota Legal Services: Free legal help for low-income residents in 21 counties in Central Minnesota

• Mid-Minnesota Legal Aid: Free civil legal help to low-income people in 20 Central Minnesota counties

• Southern Minnesota Regional Legal Services: Free legal help for civil issues in Southern Minnesota

• Volunteer Lawyers Network: Connects low-income Minnesotans with volunteer attorneys for free legal advice, representation, or referrals

🏛️ Laws on repossession and deficiency judgments are found in the Minnesota Uniform Commercial Code, Chapter 336, Article 9, Part 6, and in the state’s consumer protection laws.