Colorado Repossession Laws: Your Rights & Options

In a Nutshell: In Colorado, missing one car payment can trigger repossession. Lenders must send you a written notice giving you 20 days to catch up before taking your vehicle. Repo agents must follow strict rules and cannot breach the peace. They must be licensed and notify local police within one hour. If your car sells for less than you owe, you still owe the deficiency balance. You can explore bankruptcy to eliminate this debt or work with your lender early to keep your vehicle.

How Many Payments Can I Miss Without Risking Repossession?

Missing just one car payment puts you at risk of repossession in Colorado. Your loan agreement determines when you officially default. Some lenders offer a grace period, but most consider you in default immediately. They may count partial payments or missed insurance payments as default too.

Eliminate Deficiency Debt with Chapter 7 Bankruptcy

Still owe thousands after repossession? Chapter 7 bankruptcy can discharge deficiency debt and stop wage garnishment. Find out if you qualify for a fresh start today.

Check If You Qualify

Once you’ve been in default for 10 days, your lender can start repossession. But they must send you written notice first. You get a chance to catch up before they take your car.

Will You Get Notice Before Repossession?

You’ll receive notice in most cases before your car gets repossessed. After 10 days of default, your lender must send a notice of default. People also call this a right-to-cure notice.

The letter explains you’re behind on your loan. You get 20 days to catch up and pay what you owe. Pay the full amount due within 20 days to avoid repossession. If you don’t, your lender can repossess starting on day 21.

Colorado law requires lenders to send only one right-to-cure notice per year. If you already received one within 12 months and fall behind again, repossession can happen without another notice.

How Can You Prevent Repossession?

Contact your lender immediately if you’ll be late or short on payment. Many lenders work with you before your loan goes into default. You might adjust your payment schedule or set up a short-term plan. Early contact gives you more options.

Some people choose voluntary repossession, returning the car instead of waiting. This doesn’t erase your loan, but it may lower added costs. You maintain more control over the process.

Chapter 7 bankruptcy could offer a fresh start for overwhelming financial situations. Filing triggers an automatic stay that temporarily stops most collection efforts, including repossession. You can speak with a bankruptcy attorney for free to understand your options. The automatic stay gives you time to figure out your next steps.

What Can Repo Companies Do in Colorado?

Repossession companies in Colorado must follow specific rules when taking your car. They cannot break the law or cause a disturbance. This is called breaching the peace.

Breaching the peace includes:

Using threats, violence, or making a scene
Damaging property or forcing entry into locked areas
Lying about identity or tricking you into leaving your car
Shutting off your car remotely while you’re driving or pulled over

Repo agents can enter places like your driveway or unlocked garage.

You have the right to object peacefully to a repossession. But blocking the tow truck or physically stopping the repo could result in criminal charges. You might face extra legal costs too.

Colorado requires repossession companies to be bonded and registered with the state attorney general. They must notify local police within one hour of taking your car.

You can contact the Attorney General’s Consumer Credit Unit to check a company’s license. You can also file a complaint if something feels wrong.

What Happens to Personal Property in Your Car?

Remove personal belongings before repossession if you think it’s coming. This saves hassle later when trying to get items back.

You have the right to get personal property back after repossession. Repo companies cannot legally keep or sell your belongings. Many let you schedule pickup times. Contact the lender or repossession company directly to arrange collection.

Items permanently attached to the car stay with the vehicle. Custom rims, built-in speakers, or factory-installed GPS are considered part of the car.

What Happens After Repossession in Colorado?

After repossession, your lender can sell, lease, or keep your car. They must send written notice explaining their plan. Colorado law requires reasonable notice before taking further action. Many lenders provide at least 10 days’ notice.

If the lender plans a public auction sale, the notice must include:

Date, time, and location of the sale
Phone number and address for more information
Statement explaining your right to attend and bid

If the lender plans a private sale or wants to keep or lease the car, the notice must include:

Cutoff date (no action before this date)
Contact information for follow-up questions

Your lender must make a fair effort to sell for a reasonable price. Sale proceeds go toward your loan balance and repossession-related costs. If the sale doesn’t cover the full amount owed, you’re still responsible for the remaining balance.

Do You Still Owe After Repossession?

Most people still owe money after repossession. Your lender can add extra costs to your loan balance. These include towing, storage, administrative fees, and legal costs. Request an itemized list showing how charges were calculated.

Repossessed cars often sell for less than what’s owed. Many people face a deficiency balance after the sale. Your lender can try to collect this balance. If you don’t pay, they may sue you. Winning lenders might garnish your wages, taking money directly from your paycheck until the debt is paid.

Can You Get Your Car Back After Repossession?

You’ll need to redeem your auto loan to get your car back. Redemption means paying the full loan balance, not just missed payments. You must also cover interest, late fees, and repossession-related costs.

Your lender’s notice must include contact information for the exact redemption amount. You must pay the full amount before the sale or cutoff date listed in the notice.

Coming up with that much money at once is very difficult for most people. If you’re behind on your loan, money is likely already tight. Once the car sells, getting it back becomes almost impossible.

Where to Find More Information About Colorado Repossession Laws

Colorado Legal Services offers free legal assistance to low-income Coloradans and seniors
Colorado Department of Human Services protects and promotes older adults’ rights by helping with legal issues
The Denver Bar Association’s Metro Volunteer Lawyers program offers free Chapter 7 bankruptcy help to qualified low-income people
Visit the Colorado attorney general’s office to file a complaint against a repossession company

Colorado’s repossession laws are mainly in Title 5, Article 5 for consumer loans and Title 4, Article 9 for general rules on secured property.

Frequently Asked Questions

How many car payments can I miss before repossession in Colorado?

You can face repossession after missing just one car payment in Colorado. Once you've been in default for 10 days, your lender can start the repossession process, but they must send you a 20-day right-to-cure notice first, giving you a chance to catch up on payments.

What is breaching the peace during repossession in Colorado?

Breaching the peace means repo agents cannot use threats or violence, damage property, force entry into locked areas, lie about their identity, or shut off your car remotely while you're driving. They can enter unlocked areas like driveways or unlocked garages to repossess your vehicle.

Can I get my personal belongings back after repossession?

Yes, you have the right to get personal property back after repossession. Repo companies cannot legally keep or sell your belongings. Contact the lender or repossession company to schedule pickup. Items permanently attached to the car, like custom rims or built-in speakers, stay with the vehicle.

Do I still owe money after my car is repossessed in Colorado?

Yes, most people still owe money after repossession. If your car sells for less than what you owe, you're responsible for the deficiency balance plus repossession costs like towing, storage, and administrative fees. Your lender can sue you and potentially garnish your wages if you don't pay.

Can bankruptcy stop car repossession in Colorado?

Yes, filing Chapter 7 bankruptcy triggers an automatic stay that temporarily stops repossession while your case is pending. Bankruptcy can also eliminate deficiency debt if your car has already been repossessed and sold. This gives you time to explore options and potentially get a fresh financial start.

Colorado Repossession Laws: Know Your Rights When You Miss a Payment