Can a Bank Repossess Your Car Under Debt Review?
If your vehicle finance agreement is included in debt review and you maintain your restructured payments, the bank is generally restrained from repossessing the vehicle. However, if payments are missed, the bank may issue a termination notice and resume enforcement. Agreements where judgment was already obtained before debt review may be excluded.
Key Points
- Maintaining payments restrains repossession on included accounts.
- Missed payments can lead to termination and enforcement.
- Prior judgment may exclude an account.
- Communicate with your debt counsellor if problems arise.
This article provides general consumer information and is not legal advice. Individual circumstances differ. If legal proceedings have already started, obtain advice relevant to your specific circumstances.
The protection while payments are maintained
When your vehicle finance is included in debt review and you maintain the restructured payment, the credit provider is generally restrained from repossessing the vehicle. This is one of the key protections of the process for consumers worried about losing their car.
The payment is restructured to an affordable amount and distributed through the Payment Distribution Agency.
When the protection can be lost
If you miss restructured payments, the bank may issue a notice of termination on the vehicle account and resume enforcement proceedings, which can lead to repossession. This is why maintaining payments — or contacting your debt counsellor immediately if you cannot — is essential.
If the bank had already obtained judgment before you entered debt review, that account may be excluded from the protection.
What to do if you are worried
If you are concerned about vehicle repossession, contact a debt counsellor promptly to assess whether debt review is appropriate and whether the agreement can still be included. Acting early, before legal proceedings advance, generally preserves more options.
If you are already under debt review and expect a payment problem, tell your debt counsellor before the payment date.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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