Mississippi Repossession Laws: Your Rights After Missed Payments
In Mississippi, lenders can repossess your car after just one missed payment without giving you advance notice. You have options to prevent repossession, including payment plans, forbearance, or even bankruptcy protection. If your car is repossessed and sold, you may still owe a deficiency balance that the lender can pursue through the courts.
Defend Your CaseIn a Nutshell: In Mississippi, your car can be repossessed after just one missed payment. Lenders don’t have to give you any advance notice before taking it. Repo agents can legally take your car from public areas or your driveway. They must avoid breaching the peace or damaging property. After repossession, the lender must give you at least 10 days’ notice before selling the car. You may still owe money if the sale doesn’t cover your full loan balance and fees.
How Many Payments Can You Miss Without Risking Repossession?
In Mississippi, a lender can legally repossess your car after just one missed payment. Your loan agreement might say otherwise, but most don’t.
Facing a Deficiency Balance Lawsuit After Repossession?
Don't ignore the summons. Lenders in Mississippi can sue you for the balance after your car is sold. You need to respond within the court deadline to protect your rights.
Get Help NowWhen you take out a car loan, the lender uses your car as collateral. Missing even a single payment can count as a default and trigger repossession.
Repossession usually doesn’t happen overnight. It costs lenders time and money, so they may contact you first. They may give you a little time to catch up on payments. But they’re not required to give you any official notice before they take action.
Act quickly if you’ve missed a payment.
Will You Be Notified Before the Repossession?
In Mississippi, lenders don’t have to give advance notice before repossessing your car. Some may choose to send a reminder or a default notice. The law doesn’t require it.
A repossession can happen without warning. It sometimes occurs overnight or while you’re at work.
How Can You Prevent a Repossession?
If you’re behind on your car loan, you still have options to avoid repossession. Some lenders offer forbearance. Forbearance temporarily pauses or lowers your payments to give you time to catch up.
You can also ask about payment plans or other loan modifications. Our partner Cambridge Credit Counseling can help you negotiate a payment plan that works for your budget.
If keeping the car isn’t realistic, voluntarily surrendering it might be the better route. Voluntary surrender won’t erase the debt. But it may reduce repossession costs and make the balance you owe more manageable.
If you’re behind on your car loan and also struggling with credit cards or medical bills, bankruptcy may help. It can temporarily stop repossession through something called the automatic stay. Protection begins as soon as you file. It puts a pause on things like repossession and collection calls while the court reviews your case.
What Can Repo Companies in Mississippi Do?
In Mississippi, lenders can repossess a car without going to court. People call this a self-help repossession.
A repo agent can take your car from your driveway, a public street, or a parking lot. They can take it from a garage, as long as they don’t break the law. They must not disturb the peace while doing it.
Even though lenders have this right, you still have legal protections. Repo agents can’t enter a locked garage. They can’t break gates or doors. They can’t use force to take the car. They also can’t threaten you, damage property, or act violently during the repossession.
Warning: Don’t physically block the repossession or get into a confrontation. If things escalate, you could face legal trouble yourself.
What About the Personal Property in Your Car?
The lender only has a claim to the car itself. They have no claim to your personal belongings inside it. After a repossession, you have the right to get your things back.
Call the lender or the repo company. Find out where your car is and how to recover your items. If you think repossession is likely, remove anything valuable or important ahead of time. Save yourself the hassle of tracking down your belongings later.
What Happens After a Repossession in Mississippi?
After repossessing your car, the lender will usually sell it. They do this to recover some of what you owe. The sale could happen through a private sale or a public auction.
Lenders are required to send you a written notice at least 10 days before the sale. The notice must include the date, time, and place of the sale. It could also include the earliest date a private sale might happen.
The lender must sell the car in a commercially reasonable way. That means they must try to get a fair market price. They must follow standard business practices. If the car is sold at auction, you have the right to attend. You can even bid on the car yourself.
In some cases, a lender may decide to keep the car instead of selling it. But to do this, you must agree in writing. Or you must not object after they send you notice. If you’ve paid more than 60% of the loan, they must sell the car within 90 days.
Do You Still Owe After a Repossession in Mississippi?
Repossessing the car doesn’t cancel your loan. If the sale doesn’t cover the full amount you owe, you may still owe the rest. The amount includes fees like towing, storage, or auction costs. People call this a deficiency balance.
The lender should send you a notice. It outlines what you still owe, including any repossession-related charges.
If you can’t afford the remaining balance, the lender might take you to court. If they win a judgment, they could try to collect the money. They might do this by garnishing your wages or using other collection methods.
If you’re facing a deficiency balance lawsuit, our partner Solo can help you respond to the court summons and negotiate a settlement.
Can You Get Your Car Back After a Repossession in Mississippi?
You do have a chance to get your car back after a repossession. People sometimes call this the right of redemption. It lasts until the lender sells your car or decides to keep it instead of collecting payment.
To get the car back, you’ll need to pay everything you owe on the loan. You can’t just pay the past-due amount. The total usually includes the remaining loan balance, plus repossession costs. Repossession costs include towing, storage, and any attorney fees. It might also include insurance and other penalties.
Where Can You Find More Information About Repossession Laws in Mississippi?
The following local resources may help if you’re facing repossession in Mississippi:
- Mississippi Center for Legal Services: article on repossession and free civil legal assistance to low-income people in Mississippi
- North Mississippi Rural Legal Services: free civil representation to low-income folks in the northern 39 counties of Mississippi
- Mississippi Free Legal Answers: virtual legal advice clinic sponsored by the American Bar Association
- Mississippi Code on Repossession Title 75, Chapter 9 (secured transactions), Mississippi’s Uniform Commercial Code