It only takes one missed car payment for a lender to start the repossession process—but most won’t act immediately. Many lenders wait until you’re 60 to 90 days behind before taking action. Still, your loan agreement, your lender’s policies, and Kentucky law all play a role. In fact, Kentucky lenders are allowed to begin repossession after just one missed payment, and they’re not required to give you advance notice unless your contract says otherwise.
So how many payments can you miss before repo? It varies by lender, but here’s a general timeline:
- One Missed Payment – May lead to credit reporting or late fees, but not usually repossession.
- Two Missed Payments – Loan is often considered seriously delinquent; lenders may start collection efforts.
- Three or More Missed Payments – Many lenders initiate repossession at this point, sometimes without warning.
📞 If you’re behind or worried about missing a payment, act fast. Call (502) 339-0222 or contact us online for a free consultation with the Louisville bankruptcy attorneys at O’Bryan Law Offices. We’ll help you explore your options and protect your vehicle.
How Do Auto Loans Work?
If someone wants to buy a car but can’t afford to buy it outright, they may apply for an auto loan. They will then pay the lender in monthly installments to pay off the car. Each month that they pay, their auto loan balance will decrease until the loan is paid off.
When they sign the loan agreement, they agree to certain terms, including what will happen if they miss payments.
What Is Repossession?
When a borrower misses a payment on a secured loan, their lender can seize—or repossess—that secured item and sell it to pay off the remaining balance on the loan or credit account. Car loans are almost always secured loans, meaning that if a borrower fails to make their payment on time, they could face repossession. In that case, the lender can seize the car and sell it to pay off the loan.
How Many Months Behind on Payments Before Repo Happens?
The number of car loan payments you can miss before repossession can vary depending on your lender. If they are more lenient, they may only attempt to repossess your car if you have three or more missed car payments. If they are stricter, they may repossess your vehicle after just one missed loan payment.
Even if your lender is more flexible and understanding, missed payments can still negatively affect you. If you miss a car loan payment, it will appear on your credit report and remain there for approximately seven years.
In Kentucky, lenders are allowed to begin the repossession process as soon as you default on your loan, which can happen after just one missed payment.
However, most lenders don’t act immediately. In practice, many lenders wait 60 to 90 days before proceeding with repossession, as the process can be expensive and time-consuming for them as well. Keep in mind, though, that this is not guaranteed, and your loan agreement may give your lender the right to repossess your vehicle much sooner.
Kentucky law does not require lenders to give you advance notice before they repossess your car unless your loan contract specifically provides for it, so it’s important to act quickly if you’ve fallen behind.
One Missed Payment
Missing just one payment may not immediately trigger repossession, but it can still have serious consequences. Some lenders will report the delinquency to credit bureaus right away. Others may offer a short grace period or wait until the account is 30–60 days overdue before taking the next steps. Either way, your account status becomes more vulnerable after a single missed payment.
Two Missed Payments
Once you’ve missed two consecutive payments, your loan is usually considered seriously delinquent. At this point, lenders may start reaching out more aggressively—sending formal notices, making collection calls, or flagging your account as in default. This is a critical window to contact your lender and try to work out a solution.
Three or More Missed Payments
After three missed payments (typically around 60 to 90 days past due), many lenders will begin the repossession process. While some may give you a final warning, others might send a recovery agent without any notice. Once the process starts, it becomes much harder to stop—so the sooner you act, the better your chances of keeping your car.
How Will Late Payments Affect Your Credit Score?
Lenders can report late car payments to credit bureaus, which can immediately harm your credit. While late payments won’t affect your credit score as negatively as missed payments, they can still be detrimental to your credit rating, especially if it is overdue by 30 days or more.
Additionally, the longer it goes unpaid, the bigger the consequences. If you know you are behind on a car payment, you must contact your lender and make arrangements to get it paid as soon as you can.
📞 If you’re behind on payments, contact us online or call (502) 339-0222 for a free consultation to discuss your options and protect your credit.
Does My Lender Have to Tell Me Before They Repossess My Car?
No, if your lender decides to repossess your car, they do not have to provide you with a notice before they attempt to repossess it. Lenders are only required to give you a notice before they repossess your car if it is explicitly stated somewhere in your loan agreement. If they do provide you with a notice, you’ll have a window of time where you can either prevent repossession or get your car back before it’s sold.
What Can and Can’t Repo Agents Do During Repossession?
While your lender has the right to repossess your vehicle if you default on your loan, there are limits to how they can carry out the repossession. Under Kentucky law and the Uniform Commercial Code (UCC), repossession agents are not allowed to “breach the peace” when taking your car. This means they cannot use or threaten physical force, cannot enter a locked garage or secured area without your permission, and cannot damage your property in the process.
Specifically, a repossession agent cannot legally:
- Use or threaten physical force against you or anyone else.
- Enter a locked garage, fenced area, or other secured property without your consent.
- Damage your property during the repossession process.
- Remove you from the vehicle by force if you’re inside it.
- Continue the repossession if you clearly object and their actions would cause a disturbance.
If the agent violates these rules during the repossession, you may have grounds to challenge their actions in court or even recover damages. Knowing your rights during this process can help you protect yourself if a repossession does occur.
What to Do If You Miss a Car Payment
Regardless of how it happened, a missed or late payment on a car loan can negatively affect you and your credit score. So, it’s important to pay attention to your monthly payments to make sure they are processed correctly.
If you have a late or missed payment on your car loan—or if you’ve already missed many payments—there are a few things you should do to avoid consequences like car repossession.
This can include negotiating with your lender, examining your options, and adjusting your budget to ensure you can make your car payment each month.
Communicate With Your Lender
One of the first steps you should take is to reach out to your lender about the missed payments. Depending on your financial situation, you may be able to work out a solution to avoid repossession.
If you have a missed payment and you can pay it, contact the lender and request that they re-process the payment. Suppose you have automatic payments set up. There may have been a technical issue that caused the loan to go unpaid.
If you have missed a payment and you can’t afford to pay it for whatever reason, talk to your lender and discuss extending the due date or waiving the late fee. If you are going through a period of financial hardship, your lender may be willing to help you, but you may have to provide them with proof of hardship.
Even if your lender cannot help, talking to them can prove that you are committed to paying off your loan, which can help them be more understanding regarding your situation.
Examine Your Options
If your lender can’t offer a solution—or if you already know you won’t be able to keep up with your loan—there are other steps you can take to avoid repossession and limit the financial impact.
What works best will depend on how many payments you’ve missed, your income, and whether you’re hoping to keep the car or walk away from it.
Here are some common options to consider:
- Loan deferment – You may be able to temporarily pause your car payments, giving you time to get caught up and pay any late fees.
- Loan modification – Your lender might agree to change the terms of your loan by lowering the interest rate, extending the repayment period, or adjusting the monthly amount.
- Refinancing – If your credit has improved, refinancing the loan could lower your interest rate or stretch out the loan term, reducing your monthly payments.
- Trading in your car – If the vehicle is no longer affordable, trading it in for a cheaper one can help lower your overall debt.
- Voluntary repossession – If you can’t afford the car and want to avoid wage garnishment or forced repossession, you can return it to the lender on your own terms.
- Bankruptcy – As a last resort, filing for bankruptcy may help protect your car from repossession, depending on your situation.
Each of these options comes with pros and cons, but taking action early can give you a better chance of protecting your finances—and possibly your vehicle.
Watch for Warning Signs of Repossession
If you’ve fallen behind on your car loan, it’s also important to pay attention to signs that your lender may be preparing to repossess your vehicle. These warning signs can help you act sooner and possibly avoid losing your car. Some of the most common signs include:
- Receiving frequent collection calls or notices about your missed payments.
- The lender refusing to accept partial payments or insisting on the full overdue amount.
- Your account is being turned over to a recovery agent or collection agency.
- Being told that your account is in default and scheduled for further action.
If you notice any of these warning signs, contact your lender right away to discuss your options. Acting early may help you keep your vehicle and minimize damage to your credit.
📞 If you’re seeing these warning signs, don’t wait — contact us online or call (502) 339-0222 for a free consultation to explore your options.
How to Get a Repossessed Car Back
Many people place a lot of sentimental value on their personal property, so it’s not surprising the lengths to which some people will go to keep their car. While car repossession can be difficult to deal with, it doesn’t mean that you’ll lose your car for good.
In fact, there are a few things you can do to get a repossessed car back and even improve your credit score. Under Kentucky law, you can reclaim your car at any point in the repossession process as long as you do it before the car sells.
Reinstate the Loan
After repossession, consider reinstating your loan contract. Reinstatement often requires you to provide a lump-sum payment to cover the outstanding loan balance, as well as any late fees or repossession fees the lender incurred in the process.
If you think you would still be unable to keep up with their proposed car payment plan, you may be able to negotiate with your lender to reach a more feasible agreement.
Pay Off Your Car
If your car has been repossessed, and you can pay off the entire car loan as well as any late payment fees or repossession costs, you can get your car back without having to reinstate your loan. This is a much more expensive alternative to reinstatement, but it can help you get your car back without making payments in the future.
Buy the Car at Auction
If you are unable to reinstate your loan or pay off your car before it goes to auction, you can buy your car outright at auction. Your lender will provide you with notice of the sale, as well as the time, date, and location of any public auction so that you can bid on your own car.
While you may still have an outstanding loan balance after the sale, you’ll at least have your car back in your possession.
How to Stop Vehicle Repossession
You may have heard of various car repossession loopholes, but some of these tactics can harm you more than they help you. That’s why one of the best and most effective ways to stop repossession is by filing for bankruptcy.
Save Your Car by Filing for Bankruptcy
When you file for bankruptcy, you normally get a “stay” of collection activities. This means that creditors cannot proceed with collection efforts once you’ve filed for bankruptcy, allowing you to temporarily protect your assets, like your vehicle. Additionally, bankruptcy can relieve you of other debts, which can allow you to make payments and stay in compliance with your loan agreement.
Contact a Kentucky Bankruptcy Lawyer at O’Bryan Law Offices Today
Missing payments on your car loan can have serious consequences and can negatively affect your credit after missing just one payment. Don’t let missed loan payments ruin your life–if you are struggling to keep up with your current loans, contact our Louisville bankruptcy attorneys at O’Bryan Law Offices. We’ll walk with you through every step of the process and will ensure that you receive the best financial outcome possible.
Call us at (502) 339-0222 or contact us online and schedule a free initial consultation with us today.
