What happens when a vehicle gets repossessed?

When a person finances a car, the vehicle serves as collateral for the auto loan. If the borrower cannot repay the loan as agreed, the lender can repossess the car and sell it at auction.

Individuals who are falling behind on their bills should learn more about what to expect with a vehicle repossession in Louisiana.

Requirements for repossession

While the lender does not have to receive court approval for repossession, they must follow the terms stated in the loan agreement and use a repossession company with a valid Louisiana license.

The borrower must also receive written notice of repossession, which is only legal when he or she is at least 30 days late with an auto loan payment. This notice must appear in at least a 12-point font.

The repossession process

If the lender meets the above requirements, they can proceed with repossessing the vehicle. However, Louisiana law prohibits breaching the peace in doing so. The repossession company can only take the car from a public parking lot or roadway. The borrower must give consent for the repossession company to take the car from the garage or driveway.

If the borrower does not give consent for the repossession, the lender can obtain a court order. If this occurs, the repo company will return with a law enforcement officer to complete the job.

When a person can no longer afford his or her car payments, filing for bankruptcy is an option to delay the repossession. This gives the person extra time to reorganize debts and potentially keep the vehicle.