Repossession Laws in Oregon

When Are You at Risk of Repossession in Oregon?

In Oregon, a lender can start the repossession process as soon as you're in default on your car loan. 

🔍 Your car loan will explain what counts as a default. In some cases, missing just one payment or even being a day late with payment could count as default. You may also be in default if you let your car insurance lapse or break another part of the agreement.

Because the rules vary by contract, it’s a good idea to review your loan terms carefully. This is the best way to understand when you could be at risk of repossession.

Will I Be Notified Before the Repossession? How?

In Oregon, lenders don’t have to give you a heads-up before repossessing your car. That means your car could be taken without warning once you’re behind on your payments. 

🚙 Repossessions can happen at any time — overnight while it’s parked in your driveway or during the day while you’re at work, school, or even out running errands.

How Can I Prevent a Repossession?

If you're struggling to make a car payment, reach out to your lender before you fall too far behind. Some lenders offer hardship programs or temporary payment plans to help borrowers avoid repossession. 

If your lender isn’t willing to help and you know you can't keep up with the payments, you can ask about voluntarily surrendering the car. This means you return the car to the lender before they repossess it. Doing this can help give you more control over the process and avoid extra costs like towing and storage fees.

If you’re behind on your car loan and struggling with other debts, you can also explore Chapter 7 bankruptcy. It has two big benefits.

✋ First, when you file, an automatic stay goes into effect right away. This temporarily stops most collection actions, including repossession, while the bankruptcy case is active. 

Second, if your case is successful, you get a fresh start financially. Chapter 7 wipes out common debts like credit cards, medical bills, personal loans, and more.

If you’re thinking about filing Chapter 7, Upsolve may be able to help. Our free filing tool walks you through the filing process without hiring a lawyer. It only takes a few minutes to see if you qualify.

What Can Repo Companies in Oregon Do?

In Oregon, a repossession company can take your car if you’re in default on your loan, but they’re not allowed to breach the peace while doing it. That means they can’t use force, threaten you, or cause a scene. 

Repossession agents also can’t enter locked areas or take a car from inside a garage. If they can’t access the vehicle, your lender may ask the court for an order allowing law enforcement to step in and assist with the repossession.

If you’re there when the repossession happens and you clearly object, they’re supposed to stop. 

✍️ If they don’t — or if they act aggressively — you can file a complaint with the Oregon Department of Consumer and Business Services. This agency oversees repossession companies, which must also be registered as debt collectors to operate legally in the state.

What About the Personal Property in My Car?

Repossession companies are required to return any personal belongings that were in your car at the time of repossession. This includes things like clothing, tools, or important documents. 

They don’t usually have to return anything that’s considered part of the car itself, like a stereo system or other custom add-ons, even if you installed them.

If you know you’re at risk of repossession, it’s a good idea to remove your personal items ahead of time. Doing this can help you avoid the stress and hassle that sometimes come with trying to get your things back afterward.

What Happens After a Repossession in Oregon? 

After your car is repossessed, your lender must send you a notice with important information about the next steps. 

Notice Requirements

📅 This notice must be sent after you default and at least 15 days before the car is sold. Most lenders send it after the repossession.

The notice must include:

• Your lender’s name, address, and phone number

• A description of your car and how it will be sold (public auction or private sale)

• The date, time, and place of the sale (if it's a public auction)

• A statement that you're entitled to a breakdown of your loan balance, and whether there's a fee for it

• A phone number to call if you want to redeem (get back) the car before the sale

• A warning that you may still owe money after the sale (called a deficiency)

• Contact info for questions about the sale or what you might still owe

Sale Requirements

Once you receive this notice, the lender can continue with the sale. The sale must be commercially reasonable, meaning it has to follow standard practices and be handled in good faith. If the car is being sold at a public auction, you're allowed to attend, and you may even be able to bid on the car yourself.

In some cases, a lender may offer to keep the car instead of selling it. If they do and if you agree in writing (or don’t respond to their notice), they can keep the car and cancel the remaining loan balance. That means you won’t owe anything else — even if the car is worth less than what you owed.

This might sound like a good deal, and for some people it is. But if your car is worth more than the loan balance, you could lose out on that extra value. Oregon law also says that if you've already paid 60% or more of the car’s original cash price, the lender must sell the car unless you agree otherwise.

Do I Still Owe After a Repossession in Oregon?

Many people still owe money after their car is repossessed. After the car is sold, the money from the sale is used to pay off the loan and any repossession-related costs, like towing, storage, or auction fees.

If the sale doesn’t cover the full amount you owe, the remaining balance is called a deficiency balance. Even though you no longer have the car, you're still responsible for paying this amount.

In many cases, lenders try to collect deficiency balances by suing in court. If they win, they may be able to garnish your wages or take money from your bank account to collect on the debt.

If you're facing a deficiency balance after a repossession — or you're feeling overwhelmed by other debts like credit cards or medical bills — Chapter 7 bankruptcy may be helpful. It can help erase many kinds of debt, including what you still owe after your car is sold.

Upsolve’s free filing tool is designed to guide you through the process, step by step. You can get started today.

Can I Get My Car Back After a Repossession in Oregon?

You may be able to get your car back after it’s been repossessed, but only if you act quickly. 

💡 This is called the right to redeem, and it means you can reclaim the vehicle by paying the full amount you owe, plus any repossession costs and collection-related fees. 

You can redeem the car any time before it’s sold. Since the lender has to wait at least 15 days after sending you a notice of the sale, you’ll have a short window to come up with the money. 

That said, redeeming a car is often challenging because it usually means coming up with a large lump sum in a short amount of time. And once the car is sold, it’s too late to get it back.

Where Can I Find More Information About Repossession Laws in Oregon?

If you're dealing with a car repossession or worried one might happen, the resources below can help. These organizations offer legal information, free or low-cost assistance, and guidance on your rights under Oregon law:

• Legal Aid Services of Oregon provides legal services to low-income folks in Oregon.

• Oregon Law Center provides free legal help to low-income people throughout the state.

• Oregon Law Help connects people with civil legal information and legal help.

• Oregon Legal Research offers resources for finding free or low-cost attorney services across the state.

🏛️ Oregon repossession laws can be found in ORS Chapter 79 – Secured Transactions, especially sections ORS 79.0601 to ORS 79.0627. These sections cover what lenders can do after a borrower defaults, including repossession, sale of the vehicle, and notice requirements.