Mississippi Repossession Law

Mississippi Repossession Law allows “self-help” repossession. It states that your possessions can be repossessed under the following conditions:

  • You signed an agreement and used the property as collateral for the loan.
  • You failed to honor the terms of the loan agreement (note: the property may be put up for repossession immediately).
  • Many lenders will have you sign an acknowledgement to this in your loan papers.
  • Mainly repossessions in Mississippi are for cars or trucks, but can be any vehicle that is security for a loan (boat, ATV, RV, tractor, airplane, etc).
    • Companies have many rights legally to repossess your vehicle, but they do have to abide by certain rules that limit how and where they can take back your property.
  • Mississippi repossession agents cannot come into your home without being invited in to repossess your property (ie: furniture, TV, guns, etc).
  • Mississippi repossession agents cannot be violent in any way when repossessing your property.
  • Repossessions in Mississippi are not allowed to occur if a repo agent tricks you into bringing your vehicle to a shop for service and taking it after you’ve left.  However, if you take your vehicle to a shop on your own, the repo agent does have the right to repossess it from there.
  • Agencies authorized to repossess property are NOT required to notify you before repossessing your vehicle.
  • In Mississippi, there does not have to be a court hearing in order for a company to repossess your car or truck.
  • Note: Mortgage companies are not able to repossess a house in Mississippi. Mississippi law requires that homes be placed into foreclosure and auctioned if the loan is not paid.

How do you get your car or truck back after it has been repossessed?

  • Mississippi repossession laws state that your vehicle loan holder mail you (and anyone cosigned with you) a notice stating that you have the right to redeem (retrieve) your vehicle once you have paid and handled all the outstanding debt (often including repo fees) related to the vehicle.
  • The notice will provide a deadline by when you must redeem your vehicle before it is to be sold at auction.
  • It is possible that the lender may require you to pay off the entire loan of the vehicle before getting the car or truck back.
  • You CAN file for a Chapter 13 bankruptcy and avoid repossession of your vehicle. The Chapter 13 Plan will restructure the debt and payments for you, giving you a 3-5 year period to pay for your vehicle(s) and while in the Chapter 13, the vehicle(s) is fully protected by the court from any repossession.
  • You CAN file for a Chapter 7 bankruptcy and avoid repossession of your vehicle. The Chapter 7 bankruptcy will stop all repossession actions. You will have the option to redeem your vehicle, enter into a reaffirmation agreement for your vehicle, or seek other options. The lender does have the right to agree or not agree to reaffirmation. If the lender is determined to take back the vehicle, a Chapter 7 can only delay this action and provide you more time to prepare to surrender the vehicle.
    • Contact us (Mississippi bankruptcy attorneys) to help you. We are happy to provide you information and options in order for you to make the best decision for you and your family.

Can you retrieve your personal belongings from your repossessed vehicle, even if that’s all you want? Yes.

  • The repossession company is to provide you with the information you need on how, when, and where to retrieve any personal items from the vehicle they repossessed.
  • Mississippi repossession laws do allow these companies to remove all loose items from the vehicle and store them, but at cost to you.
  • If the company for some reason is not allowing you the opportunity to retrieve your property, then you should contact the lender and work through them to retrieve your items.

What happens if you don’t pay for your repossessed vehicle?

  • MS repossession laws allow the lender to sell at auction any repossessed vehicles if they are not paid for (redeemed) by their deadline.
  • After the sale, the lender will send you a notice telling you what your vehicle sold for and what, if any balance is left between what you owed and what it was sold for.
  • The lender can then take steps to collect the difference from you if the auction price did not cover the full balance.

You have options:

  • If the lender determines you owe them the balance of the loan and they file a lawsuit against you for the balance, you may have a valid defense and/or counterclaim to that lawsuit.
    • If the lender and/or the repossession company did not properly inform you via written notice of your rights and deadlines/fees, then you may have a claim against them.
    • You are also protected from the unreasonable sale of your repossessed vehicle at auction meaning that if your vehicle is sold well under an appropriate value, you may not be responsible for the full balance against your loan.
  • You CAN file for a Chapter 7 bankruptcy and wipe out any remaining balance owed. No matter what the status of the lawsuit (not filed yet, filed but pending, judgment rendered, Writ of Garnishment rendered, etc), filing a Chapter 7 bankruptcy (or even Chapter 13 – consult your attorney) can stop the lawsuit and garnishment in its tracks immediately and wipe that debt out.  If a garnishment has started, you may even be able to get some of that garnishment money back.

Bankruptcy was created to protect you, your home, your property, and your income.  Contact an attorney in Mississippi to help you know and understand your rights under Mississippi Repossession Laws.  Whether it’s an attorney to fight the repossession, or an attorney to address the protection of your vehicle and/or elimination of the debt thru bankruptcy – utilize the free consultation option and get advice from someone who knows the law.

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