Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Are the Repossession Laws in Illinois Different Than Those in Missouri?

In Illinois, your car can be repossessed as soon as you are late with a payment. Many creditors won’t take your car this first time you are late, but they are legally allowed to do so. If you have paid more than 30% of the total purchase price of the car, you can get your car back within 21 days of the date of repossession but the price is a hefty one. You have to payback all of the payments owed, pay any late charges, and pay the costs of the repossession. That payment is too large for most people to make, especially if they cannot afford their payments. If you have paid less than 30% of the purchase price of your car, a creditor can require the entire balance to be paid back before you can have your car.

Many find themselves leaving their car to be sold at auction—but are you free from your car loan after that? Not necessarily. If the car is sold at auction for less than you owe, then you will still owe the difference. For example, if your car loan is $15, 000, but your car only sells for $11,000, you will be responsible for coming up with the other $4,000. To collect this, creditors can get a judgment and then garnish your wages or freeze your bank accounts.

So, no, the laws are not vastly different in Illinois versus Missouri. However, this is one common solution to stop repossession in both states. A chapter 13 bankruptcy can stop car repossession in both states or even get your car back after it has been repossessed. If you think you might miss a payment or have already missed a payment, you would be well-advised to contact an attorney experienced in repossession immediately.