Car repossession laws in Louisiana are straightforward — if you lease or finance a vehicle, you must make regular payments as outlined in your contract. Life isn't always so simple, as unexpected events like illnesses can keep you out of work, which might lead you to miss one or two payments.
With that in mind, how many payments can you miss before facing repossession in Louisiana? In this guide from Cash Cow in Louisiana, we're going to outline everything you need to know about avoiding car repossession. We will also explain how our payday loans can help when you miss a car payment.
How Many Missed Car Payments Before Repo In Louisiana?
Under Louisiana law, your lender can begin repossession if you miss two consecutive payments. This means that once you miss your second payment, your vehicle can be repossessed.
That said, the above only applies if you make one payment each month. If you make multiple payments per month, the default occurs after 60 days without a payment.
Lenders can't immediately seize your car without warning, though. Before they can repossess it, they must send you a written notice that must include:
- Your name
- Your last known address
- Your vehicle's description
- A statement noting that the law allows the repossession of vehicles upon default without additional notice
Interestingly, however, Louisiana law doesn't specify the number of days required for notice. Still, the repossession company must follow certain rules once the repossession process has started. They cannot use force, must have a license, and cannot take your vehicle if you are present and protesting. You can also retrieve any property in your vehicle within ten days of the repossession.
Do Louisiana Car Loan Payments Come With Grace Periods?
Car loans typically do not include a grace period for missed payments. As a result, once you miss a payment, lenders can begin repossession procedures at any time, as long as they follow the outlined rules.
That said, you should always review your agreement, as it might include provisions about grace periods and similar repayment terms.
Even without a legal grace period, staying in touch with your lender is crucial to prevent hasty repossession actions. If you think you might face repayment troubles, contact your lender immediately. Showing initiative demonstrates your commitment to resolving the problem and finding alternative solutions.
What Happens After A Car Repossession?
Once your car is repossessed, the creditor will sell it at an auction. The proceeds from the sale are used to pay off your remaining loan balance. However, if the car sells for less than you owe, you may have to pay the difference, known as a deficiency balance.
For example, if your loan balance is $15,000 and the vehicle sells for $11,000 at auction, you could be responsible for the $4,000 deficiency. However, some lenders might add attorney's fees, repossession costs, court fees, and late charges to this amount.
You might be able to lower the fees and deficiency balance mentioned above by voluntarily surrendering your vehicle if you cannot continue making payments. However, it won't remove all responsibility for the balance and fees.
Can You Get Your Car Back After A Louisiana Repossession?
If you've already experienced a repossession and want to get the vehicle back, you should contact the creditor to find out what steps you need to take. Depending on the creditor and your history, they might allow you to redeem the vehicle before it's sold at auction by paying what you owe.
This involves paying your overdue amount, which includes missed payments, late fees, and repossession costs. You can also fully redeem your vehicle by paying off the entire loan. If you don’t think you can afford it, you can try to buy the car at auction, but the price might go higher than what you owe.
Can Filing For Bankruptcy Help You Keep Your Car?
You might be able to keep your car if you file a Chapter 13 or Chapter 7 bankruptcy.
A Chapter 13 bankruptcy in Louisiana, also known as a wage earner's plan, allows you to create a plan to repay your debts over three to five years while earning a steady income. Although there are limits on the amount of debt you can have to qualify, this may be a suitable option for you.
A Chapter 7 bankruptcy in Louisiana, also known as a liquidation bankruptcy, is a process where you sell non-exempt assets to pay creditors, and the remaining eligible debts are forgiven. Eliminating your most unsecured debts (e.g., credit cards and medical bills) provides a fresh start when you have no other options.
How To Avoid Car Repossession With A Payday Loan
Financial emergencies that can affect your ability to make car payments can arise when you least expect them. They can derail your finances and cause you to miss two car payments in a row.
If you might miss a car payment due to a one-time financial emergency, you can get a payday loan from us at Cash Cow in Louisiana. It allows you to borrow up to $300 from your next paycheck by proving your income. You can secure the money within one business day without needing to provide collateral, making it a quick financing option when you need to cover a missed car payment.
Here are the required items you will need to get approved:
- A driver’s license or state-issued photo ID that displays your name and age
- Your most recent pay stub to prove your income
- A blank check from an active checking account in your name
If you have the items listed above, you can start the process online. Fill out our online loan form to initiate the payday advance. We will call you to explain how the approval process works. After a quick chat, you can bring your required items to our nearest Louisiana store. The in-person meeting will take less than 30 minutes. Get approved for payday loans today!
FAQs
Can you get a title loan for missed car payments?
For a title loan, you must own your car outright and have a lien-free car title. That means you have fully paid off your car. If you are in danger of missing a car payment, you likely don’t own your car and won’t be able to get approved for a title loan.
Do you need good credit for a payday loan?
Although we may perform a soft credit check, your credit score will not impact your eligibility for a payday loan. It might reduce your loan amount, but you can still qualify for a payday loan even with bad credit. Additionally, we don’t report our loans to major credit bureaus, so your score will stay unchanged.
Can you get multiple payday loans?
You can only get one payday loan at a time and must pay it off before borrowing again. This helps prevent borrowing more than you can afford. If you miss a second car payment after taking out a payday loan, you'll need to find other financing options, like borrowing from friends or family.
Borrow Payday Loans In Louisiana – Borrow Up To $300 Today!
Payday loans can help you afford a missed car payment and avoid car repossession. When you need fast financial aid, Cash Cow in Louisiana can help. Our process is simple, and you can get approved the same day you apply. Start the process now – fill out our online form, and we will explain how you can get approved in person in less than 30 minutes!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
