Repossession Laws in Washington

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

In Washington, missing just one car payment can technically lead to repossession if your loan agreement says that counts as a default. This doesn’t happen often, but it’s possible. 

Most lenders don’t act immediately after a single missed payment, but some may. It depends on the terms in your auto loan contract. If you're unsure, it's a good idea to check your loan paperwork to see what your lender considers a default.

Will I Be Notified Before the Repossession? How?

In Washington, lenders usually don’t have to give you any warning before they repossess your car. That means your vehicle could be taken without notice if you're behind on payments. 

After the repossession, the lender must send you a notice explaining what they plan to do with the car and how you can get it back. This is called your right to redeem the vehicle.

How Can I Prevent a Repossession?

If you’re struggling to make a car payment, contact your lender as soon as possible. Some lenders may be willing to work with you if they understand what’s going on. They might offer a short-term payment plan or give you extra time to catch up. The sooner you reach out, the more options you may have.

If you can’t work something out, try to stay as current on your payments as possible. Even making a partial payment might show good faith. It’s not always easy, but staying in communication and doing what you can may help you avoid repossession.

Some people also explore Chapter 7 bankruptcy. When you file, the automatic stay goes into effect. This is a legal protection that temporarily stops most collection efforts, including car repossessions. But if you’re behind on payments, the lender may ask the court to lift the stay. 

Even so, filing Chapter 7 can give you some breathing room. If keeping the car isn’t realistic, many people use it to give up the vehicle and wipe out the loan. Chapter 7 can also help wipe out a deficiency balance. That’s the amount left over if the car is repossessed and sold at auction for less than what you owe.

If you're considering bankruptcy, Upsolve’s free tool may be able to help you file Chapter 7 bankruptcy on your own.

What Can Repo Companies in Washington Do?

Under Washington law, repo companies aren’t allowed to commit a breach of the peace when trying to repossess your car. This means repo agents can't take your car from your garage or from behind a fence at your house. But they can take your car from your driveway or from a parking lot. 

If you catch the repo agent in the act of repossession and tell them to stop, they should stop. If they continue with the repossession, that's also a breach of the peace. Don't try to force them to stop. If you do, you'll have breached the peace and could even have criminal charges brought against you.  

What About the Personal Property in My Car?

If you think you're at risk of repossession, it’s best not to leave any personal belongings in your car. That way, you avoid the stress of trying to get your things back later — especially if communication with the repo company or lender becomes difficult.

If your car has already been repossessed, the repo company is required to schedule a time for you to pick up your personal items. If they haven’t reached out, you can send a written request to start the process. WashingtonLawHelp.org has a letter template you can use.

If you're having trouble getting your items back, contact the lender. In some cases, you may be able to hold both the lender and the repo company responsible in court if your property isn’t returned.

Before deciding to take legal action, it’s a good idea to speak with a Washington attorney. If you want to file a complaint against the lender, you can contact the Washington State Department of Financial Institutions.

What Happens After a Repossession in Washington?

After your car is repossessed, the lender must send you a written notice before they sell it. In most cases, they have to wait at least 10 days after sending the notice before moving forward with the sale.

The notice must include:

• Information about your right to redeem the car by paying off the full loan balance and any fees

• Whether the lender plans to keep or sell the car

• The time and place of a public auction or the earliest date for a private sale

If you’ve paid more than 60% of the loan, Washington law requires the lender to sell the car within 90 days. This helps protect your right to a surplus — money left over if the car sells for more than what you owe, including repossession costs.

If you’ve paid less than 60% of the loan, the lender may propose to keep the car instead of selling it, but they must send you a written notice first. You then have 20 days to object in writing. Some people choose to object if they believe the car might sell for more than the loan balance.

No matter what, the sale must be commercially reasonable. That means the lender has to sell the car in a fair way and at a reasonable price. This matters because the sale price could affect the amount you still owe — known as a deficiency balance — if the sale doesn’t cover your full loan and repossession costs.

Do I Still Owe After a Repossession in Washington?

You may still owe money after a car repossession in Washington. If the lender sells your car and the sale price isn’t enough to cover your loan balance and repossession costs, you could be responsible for paying the difference. This is called a deficiency balance, and it often includes fees like towing fees, storage fees, and auction costs.

To avoid this, some people choose to do a voluntary repossession, which means giving the car back to the lender before it’s repossessed. While this doesn’t erase the debt, it may lower the total amount owed by avoiding some of the extra fees.

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 they win, they can use collection methods like wage garnishment to recover the money.

Chapter 7 bankruptcy can help you wipe out a deficiency balance. If you’re exploring this option, 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 Washington?

In some cases, you may be able to get your car back before it’s sold. Under Washington law, you have the right to redeem the car. To redeem it, you have to pay off the entire loan balance, plus any repossession costs like towing, storage, and fees related to the sale. You can’t just pay the missed payments — you have to pay everything that’s owed.

Timing matters. Once the car is sold, it's usually too late to get it back. If you’re hoping to redeem the car, act quickly.

If redemption isn’t an option, filing for bankruptcy may give you another chance to keep your car — but you’ll need to file before the car is sold. To find out if this could work in your situation, consider talking to a Washington bankruptcy attorney as soon as possible. Many offer free consultations.

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

The following links could be helpful if you’re facing repossession:

• WashingtonLawHelp.org: Useful information about Washington’s repossession law

• Find Legal Help: Help from the Washington State Bar Association

• Washington State Office of the Attorney General: Information on the repossession process in Washington