Car Repo Laws in Phoenix

Car repo is a scary thought for people who have financed their vehicles. The vehicle repossession process can ruin your credit and, of course, leave you without a car. Car repo in Arizona begins when you are late on a payment, at which point your lender can accelerate your loan. This means you now owe them the entire amount of the loan within a very short timeframe. If you are unable to pay off the loan or negotiate a delay in payment with your creditor, the vehicle repossession process starts.

Understanding Car Repossession Laws in Arizona

It is important to note that car repo laws must be followed by your lender if they choose to repossess your vehicle. This helps protect you and them. Be aware of car repo laws and how they apply to you.

In Arizona, for instance, car repo laws allow lenders to repossess your vehicle without notice if you stop making payments.

However, they cannot:

  • Use physical force to get the vehicle or threaten using force
  • Harm you or damage your property
  • Remove the vehicle from an enclosed space or garage.

You also have to meet some requirements, such as not hiding or withholding the vehicle.

The lender is allowed to sell your car and must do so with all attempts to get fair market value. You are allowed to get the car back before the sale if you pay what you owe, repossession fees, and legal costs.

If the car sells, you are obliged to pay the difference between what it went for, and the amount left owing.

How to Prevent or Stop Repossession

You can try to work with your lender to show that you are a person who intends to make good on your delinquent payments. If you speak to them before you start having issues, or immediately when issues start, you may be able to set up a payment plan that will accommodate your finances without putting your vehicle into repossession. Reach out to see if your lender will assist you in avoiding repossession.

Even if your vehicle has already become eligible for repossession, if you are able to bring your late payments up to date, your lender will likely not go through with the car repo. They would rather have you making payments than have to go through the vehicle repossession process, so if your loan becomes due in full, do your best to make up your delinquent payments as soon as possible.

Saving Your Vehicle with Chapter 13 Bankruptcy

If your vehicle has been repossessed, you still have a chance to have it returned to you if you can file a Chapter 13 bankruptcy before the vehicle is sold by the lender.  Because the time period is very short, it is important to contact a bankruptcy attorney before your car is repossessed, especially if the lender will not work with you.

An experienced attorney can help you to determine what rights and liabilities you may have with regards to car repo. In addition, an attorney can guide you through the process of selling or repurchasing your vehicle. Contact the Law Offices of Larry P. Karandreas, P.L.L.C. today.


This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.

Related Posts
  • How to Choose a Bankruptcy Lawyer Read More
  • 6 Top Myths about Bankruptcy Debunked Read More
  • 5 Reasons for Hiring a Bankruptcy Lawyer Read More