Car Repo Laws in Tennessee

If you took out a secured loan using an automobile as collateral and don't pay the bills as agreed, you can lose your car, according to Tennessee Code Section 47-9-503. State law also allows the lender to retain the ownership title to the car until you fully pay the auto loan; this practice prevents you from legally selling the car before you truly own it.

Time Frame

If your car is repossessed, you have 10 days to cure the default and reclaim the vehicle, according to Tennessee Code Section 47-9-506. You also must repay any repossession expenses to redeem the car, according to the LAWDOG website.

Exceptions

If you declared Chapter 7 or Chapter 13 bankruptcy, your automobile lender cannot legally repossess your car until the case is concluded through the appropriate Tennessee bankruptcy court, according to the book "How to File for Chapter 7 Bankruptcy." But once your bankruptcy is finalized, the judge may compel you to turn the vehicle over to the lender.

Considerations

Even if your car is repossessed, Tennessee codes state that the lender is not entitled to the license plates on the vehicle, according to the Repo Laws website.

References

• Repo Laws: Tennessee Repossession Laws
• LAWDOG: Tennessee Repossession
• Court of Appeals of Tennessee: Appeal from the Chancery Court for Davidson County
• Court of Appeals of Tennessee: Appeal from the Chancery Court for Davidson County
• "How to File for Chapter 7 Bankruptcy"; Stephen Elias, Albin Renauer and Robin Leonard; 2009