Nevada's 15-Day Right to Cure After Vehicle Repossession

Nevada law grants borrowers a mandatory 15-day right to cure period following vehicle repossession during which they can reinstate defaulted auto loans by paying all past-due amounts plus reasonable repossession expenses—recovering their vehicles without paying the entire loan balance[web:3][web:18]. This critical consumer protection under Nevada Revised Statutes NRS 104.9614 (Uniform Commercial Code) prevents immediate vehicle loss and provides financially distressed borrowers a final opportunity to preserve transportation while avoiding deficiency judgments averaging $4,800-$8,500 following auction sales.

The 15-day cure period begins the day after repossession occurs, running through 11:59 PM on the 15th calendar day regardless of weekends or holidays[web:3]. During this window, lenders must hold vehicles without sale, return personal property on request, and provide written notice explaining reinstatement rights and payment requirements. Nevada borrowers throughout Henderson, North Las Vegas, and Las Vegas failing to exercise cure rights within 15 days lose reinstatement ability—vehicles proceed to auction with borrowers liable for deficiency balances when sale proceeds don't cover outstanding debt.

Lenders must strictly comply with notice requirements and cure period timing to preserve rights to deficiency judgments post-sale. Violations of Nevada's cure provisions create liability exposure including wrongful repossession damages, loss of deficiency collection rights, and statutory penalty claims. Auto finance companies operating in Nevada should implement systematic notice procedures, accurate cost accounting, and calendar controls ensuring borrower cure rights receive full 15-day protection mandated by statute[web:3].

What "Right to Cure" Means Under Nevada Law

Nevada's right to cure provides loan "reinstatement" rather than full "redemption"—a critical distinction affecting payment amounts required to recover repossessed vehicles. Reinstatement allows borrowers to cure default by paying only past-due amounts (missed payments, late fees, repossession costs), while redemption requires paying the entire remaining loan balance including future payments not yet due[web:3][web:18].

Reinstatement vs. Redemption (Nevada Borrower Rights):

• Reinstatement (15-Day Right to Cure): Borrower pays only arrears—example: 3 missed $450 monthly payments ($1,350) + $400 repossession cost + $150 storage fees = $1,900 total reinstatement amount. Loan continues with original terms; borrower resumes regular monthly payments going forward. Available only during 15-day cure period immediately following repossession.
• Redemption (Before Auction Sale): Borrower pays entire remaining loan balance—example: $18,500 principal balance + $1,900 arrears + $400 repo costs = $20,800 total redemption. Borrower owns vehicle free and clear; loan fully satisfied. Available any time after 15-day cure period expires until moment vehicle sells at auction[web:18].

Most Nevada borrowers exercise reinstatement rights during 15-day cure period rather than redemption post-cure because reinstatement requires significantly less cash (arrears only vs. full balance). However, borrowers who miss the 15-day deadline or cannot afford arrears payment lose cost-effective reinstatement option—forced to either pay full redemption amount or allow vehicle sale resulting in deficiency judgment exposure.

Typical Cure Scenario: Las Vegas borrower with $22,000 auto loan falls 75 days delinquent (3 missed $485 payments = $1,455 arrears). Lender repossesses vehicle from Spring Valley apartment complex. Within 15 days, borrower pays $1,455 arrears + $425 repo cost + $225 storage (15 days × $15/day) = $2,105 total. Lender returns vehicle; loan reinstated with $20,545 remaining balance ($22,000 original - $1,455 paid arrears); borrower resumes $485 monthly payments. Without cure, borrower would need $22,655 for full redemption ($20,545 balance + $2,110 costs)[web:3].

Calculating the 15-Day Cure Period

Nevada's 15-day cure period uses calendar days (not business days), counting from the day after repossession through midnight of the 15th day regardless of weekends, holidays, or lender business hours[web:3]. Proper calculation prevents disputes when borrowers claim insufficient time and lenders face allegations of premature vehicle sales violating statutory cure rights.

15-Day Calculation Rules:

• Start Date: Day 1 = day after physical repossession date. If repo occurs November 10 at 3:00 AM, cure period starts November 11 (Day 1)
• End Date: Day 15 = midnight ending the 15th calendar day. November 10 repo = cure period ends November 25 at 11:59 PM
• Weekend/Holiday Treatment: No extensions for weekends or holidays—cure period runs continuously. If Day 15 falls on Sunday, borrower must tender payment by Sunday 11:59 PM (lender not required to maintain weekend business hours but must accept timely payment if tendered)
• Payment Timing: Payment received before midnight Day 15 = timely. Payment received 12:01 AM Day 16 = late, cure rights expired
• Notice Mailing Delays: Cure period runs from repossession date, not notice receipt date. Borrower's failure to receive timely notice doesn't extend 15 days—however, lack of notice may give borrower defenses to deficiency judgment later[web:3]

Example Timeline Calculations:

• Scenario 1: Vehicle repossessed Monday, November 3, 2025. Cure period: November 4-18 (Day 15 = Monday, November 18). Lender cannot sell vehicle before November 19.
• Scenario 2: Vehicle repossessed Friday, December 20, 2025. Cure period: December 21-January 4 (spans Christmas, New Year's, weekends). Day 15 = Saturday, January 4, 2026. Borrower must pay by 11:59 PM Saturday despite lender office closure.
• Scenario 3: Vehicle repossessed Thursday, November 27 (Thanksgiving). Cure period: November 28-December 12. Holiday doesn't delay start date; 15 days run normally.

Lender Best Practice: Document exact repossession date/time in repo agent field report. Calculate 15-day deadline immediately; enter into loan servicing system with calendar alert preventing premature sale authorization. If borrower contacts lender on Day 14 requesting payment amount, provide accurate calculation including all costs through Day 15—don't shortchange cure period by demanding immediate payment or threatening Day 14 sale.

Payment Amount Required to Exercise Cure Rights

Nevada law requires borrowers pay "all past-due amounts plus reasonable expenses incurred in repossession" to reinstate loans during 15-day cure period[web:3]. This language creates frequent disputes between lenders claiming maximum allowable costs and borrowers challenging "reasonableness" of fees ultimately paid to recover vehicles.

Allowable Reinstatement Cost Components:

• Past-Due Principal and Interest: All missed monthly payments including principal, interest, escrow (if applicable). Example: 3 missed $500 payments = $1,500
• Late Fees: Contractually authorized late charges on missed payments. Example: $35 late fee × 3 payments = $105. Must match loan agreement terms—cannot impose excessive fees exceeding contract language
• Repossession Agent Fees: Actual costs paid to repo company for vehicle recovery. Clark County market rates: $350-550 average; $600-800 for difficult recoveries requiring multiple attempts or specialized equipment. Must be actual invoiced amount—not inflated "retail" rates if lender negotiated bulk discount
• Storage Fees: Daily storage costs during 15-day cure period at commercially reasonable rates. Nevada market: $15-25/day typical. Cannot charge storage for days before repossession or after cure period expires if borrower timely tenders payment[web:3]
• Property Preparation Costs: Reasonable expenses preparing vehicle for return if exercising cure (cleaning interior debris, minor detailing). Excessive detailing or repair charges not recoverable—lender takes vehicle "as is" condition at repo
• Notice Costs: Certified mail postage for statutory cure notice and sale notice. Typical: $8-12 certified letter. Cannot charge for regular mail copies or excessive administrative fees

Non-Allowable Costs (Disputed/Unreasonable):

• Attorney Fees Pre-Sale: Nevada courts split on whether pre-sale legal fees are "repossession expenses." Conservative approach: don't include attorney fees in cure amount; reserve for deficiency judgment if vehicle ultimately sells
• Auction Preparation Costs: Cannot charge for auction fees, title work, or sale advertising during cure period when no sale yet scheduled—these aren't "repossession" expenses
• Skip-Tracing Fees: Costs locating borrower or vehicle before repo questionable—not directly "incurred in repossession" since occurred pre-recovery
• Administrative Processing Fees: Flat $200-500 "processing" or "administrative" fees often challenged as unreasonable padding without actual expense justification
• Vehicle Valuation/Inspection Fees: Appraisal costs determining auction reserve price not necessary during cure period, therefore unreasonable to impose on borrower reinstating loan

Sample Reinstatement Statement:

• Missed payments (3 × $485): $1,455.00
• Late fees (3 × $35): $105.00
• Repossession agent fee: $425.00
• Storage (12 days × $18/day): $216.00
• Certified mail notice: $10.50
• Total Reinstatement Amount: $2,211.50
• Payment Deadline: 11:59 PM, [15th day after repo]
• Payment Methods: Certified funds (cashier's check, money order) or wire transfer

Lenders should provide itemized reinstatement statements immediately when borrowers inquire about cure rights—delays or refusals to disclose amounts constitute bad faith potentially defeating deficiency claims. Borrowers disputing specific charges should pay protested amount "under protest" to preserve cure rights while reserving challenge to excessive fees in subsequent litigation[web:3].

Notice Requirements to Borrowers After Repossession

Nevada lenders must provide written post-repossession notice to borrowers within 10 days after repossession explaining cure rights, reinstatement payment amount, deadline for exercise, and consequences of non-payment[web:3]. Failure to provide timely, accurate notice creates defenses to deficiency judgments and may entitle borrowers to wrongful repossession damages even when underlying default was valid.

Mandatory Post-Repossession Notice Content:

• Repossession Confirmation: Statement that vehicle was repossessed, date of repossession, current vehicle location/storage facility
• 15-Day Cure Period Explanation: Clear language explaining borrower has 15 days from repossession date to reinstate loan by paying specified amount
• Itemized Reinstatement Amount: Detailed breakdown of past-due payments, late fees, repossession costs, storage fees, other allowable charges totaling cure payment required
• Payment Deadline: Specific date (not just "15 days") by which payment must be received—example: "Payment must be received by 11:59 PM on November 25, 2025"
• Payment Instructions: Acceptable payment methods (certified funds, wire transfer), payee name/address, contact person/phone number for questions
• Redemption Rights After Cure Period: Explanation that after 15-day cure expires, borrower can still redeem by paying full loan balance before sale
• Personal Property Return: Instructions for retrieving personal items left in vehicle within 15 days of repossession
• Sale Notice Disclosure: Statement that if borrower doesn't cure or redeem, lender will sell vehicle at auction and borrower receives separate 10-day pre-sale notice
• Deficiency Balance Warning: Explanation that if vehicle sells for less than amount owed, borrower remains liable for deficiency (or statement if Nevada law limits deficiency in specific circumstances)

Notice Delivery Requirements:

• Timing: Must mail within 10 days after repossession (not 10 business days—calendar days). Best practice: mail within 48 hours of repo to ensure borrower receives notice early in 15-day cure window
• Delivery Method: First-class mail minimum; certified mail with return receipt recommended creating proof of mailing date and delivery. Email/text insufficient alone—must provide written hard copy notice
• Address: Mail to borrower's last known address per loan application and any updated addresses provided during loan term. If certified mail returns undeliverable, send to co-borrower, guarantor, or employer address if available
• Language: Plain English avoiding legalese; Spanish translation if borrower's primary language indicated in loan documents (Nevada has significant Spanish-speaking population in Las Vegas/Henderson areas)

Consequences of Notice Defects: Lender failing to provide timely, complete post-repo notice may lose ability to collect deficiency judgment post-sale. Nevada courts hold deficiency actions require strict compliance with notice requirements—defects are not "technical" violations but substantive failures defeating lender's statutory rights. Additionally, borrowers can affirmatively sue for wrongful repossession damages if notice failures prevented cure right exercise[web:3].

What Happens When Borrower Exercises Cure Rights

Borrowers exercising cure rights by tendering full reinstatement payment within 15 days completely restore original loan terms—repossession event treated as if it never occurred for purposes of continuing loan relationship. Lenders must promptly return vehicles without imposing additional conditions, fees, or requirements beyond the reinstatement payment amount disclosed in post-repo notice.

Lender Obligations Upon Timely Cure Payment:

• Vehicle Return (24-48 Hours): Lender must release vehicle to borrower within reasonable time after receiving cure payment—typically 24-48 business hours allowing time to verify payment clearance and prepare vehicle for pickup
• No Additional Fees: Cannot impose "vehicle return fee," "redemption processing fee," or other charges beyond amounts disclosed in reinstatement statement. Original notice amount is final—no surprises at pickup
• Vehicle Condition: Must return vehicle in same condition as repossessed (normal wear excepted). Cannot strip aftermarket accessories, remove stereo equipment, or allow deterioration during storage period
• Personal Property Return: All personal items left in vehicle at repossession must be returned intact—lender liable for lost/damaged property claims if items disappear during storage
• Title/Registration: No title or registration changes occur during cure period—vehicle ownership never transferred; borrower maintains continuous title throughout. Lender cannot demand re-titling or registration fees
• Loan Account Restoration: Loan account updated showing "current" status; repossession notation removed from internal servicing system. Borrower resumes regular monthly payments per original schedule
• Credit Reporting Correction: Lender should update credit bureaus removing "repossession" tradeline, reporting loan as current. However, prior late payment history (30/60/90 day lates before repo) remains as accurate historical reporting

Borrower Protections Against Lender Bad Faith:

• Payment Method Restrictions: Lender cannot demand cash-only payment or require in-person delivery if borrower offers certified funds via mail or wire transfer. Imposing unreasonable payment restrictions defeats cure rights
• Business Hours Accommodation: If Day 15 falls on weekend/holiday and borrower tenders payment during business hours on next business day, courts may find substantial compliance with cure deadline—lender cannot exploit closed-office situation preventing timely payment
• Partial Payment Rejection: Lender refusing partial payment tendered with promise of balance within cure period must clearly communicate rejection—cannot accept partial payment then claim cure failed. Better practice: accept partial payment applying to arrears, holding vehicle until balance paid within cure window
• Vehicle Location Disclosure: Lender must disclose vehicle storage location allowing borrower to inspect condition before cure payment. Refusal to provide location or access suggests lender damaged vehicle or wants to avoid return

Post-Cure Loan Performance: Studies show borrowers exercising cure rights have mixed subsequent performance—approximately 40% re-default within 6 months, 35% maintain payments through loan maturity, 25% default again but after 6+ months. Lenders should not impose stricter servicing standards post-cure (demanding proof of insurance more frequently, threatening immediate re-repo on minor late payments) as such conduct may constitute retaliation for cure right exercise[web:3].

What Happens If Borrower Doesn't Exercise Cure Rights

Borrowers failing to tender full reinstatement payment by midnight of Day 15 lose cost-effective cure rights—vehicles proceed to disposition process with borrowers facing auction sale, deficiency judgments, and credit score damage. However, Nevada law provides additional protections even after cure period expires, giving borrowers limited opportunities to recover vehicles or minimize financial harm.

Post-Cure Period Rights (After Day 15 Expires):

• Full Redemption Right: Borrower can still recover vehicle by paying entire remaining loan balance plus all accrued costs—must occur before vehicle sells at auction. Example: $18,500 balance + $2,200 costs = $20,700 full redemption. Available until moment vehicle sells (not just until auction date—if vehicle doesn't sell at auction, redemption remains available)[web:18]
• 10-Day Pre-Sale Notice: Lender must provide second written notice at least 10 days before auction date disclosing sale date/time/location, current loan balance, redemption amount. Borrower can attend auction, bid on own vehicle, or pay redemption amount up until sale gavel falls
• Commercially Reasonable Sale Requirement: Nevada UCC requires lender conduct sale in "commercially reasonable" manner—proper advertising, reasonable reserve price, auction at appropriate venue. Borrower can challenge unreasonable sale obtaining damages or deficiency judgment reduction
• Surplus Funds Right: If vehicle sells for more than total debt + costs, lender must remit surplus to borrower. Example: Vehicle sells $25,000, total debt $22,000, costs $1,500 = $1,500 surplus owed to borrower within 30 days of sale
• Deficiency Balance Dispute: If vehicle sells for less than debt + costs, lender can sue borrower for deficiency. Borrower defenses: improper notice, unreasonable sale, repossession without authority, violations of cure rights. Nevada requires strict lender compliance to recover deficiencies

Typical Post-Sale Timeline:

• Day 1-15: Cure period (reinstatement available)
• Day 16-25: Lender prepares vehicle for auction (title work, inspection, photos, advertising)
• Day 26: Lender mails 10-day pre-sale notice to borrower (sale scheduled Day 36+)
• Day 36-45: Auction occurs; vehicle sells to highest bidder or lender keeps if reserve unmet
• Day 46-60: Lender calculates deficiency balance, sends demand letter to borrower
• Day 90+: If borrower doesn't pay deficiency, lender files lawsuit or refers to collection agency

Negotiation Opportunities Post-Cure: Borrowers unable to afford full redemption but wanting to avoid auction can negotiate with lenders for voluntary surrender with deficiency settlement. Lender benefits: saves auction costs ($800-1,200), faster resolution, avoids sale challenge litigation. Borrower benefits: can negotiate 30-50 cent on dollar deficiency settlement, avoids "repossession" credit reporting (shows as voluntary surrender instead). Settlements typically structured as: borrower surrenders keys + signed title transfer; lender agrees to settle deficiency for $X payable over 6-12 months; lender reports "paid settlement" to credit bureaus rather than unpaid deficiency.

Personal Property Return Rights During Cure Period

Nevada law requires lenders provide borrowers access to retrieve personal property left in repossessed vehicles within 15 days of repossession—same timeline as cure period[web:3]. Personal property includes any items not permanently attached to vehicle: clothing, tools, child car seats, GPS devices, garage door openers, mail, documents, sports equipment, and other belongings.

Lender Obligations for Personal Property:

• Inventory at Repossession: Repo agent should document all visible personal property at time of recovery, photographing items and creating written inventory list. Protects against later claims of missing property or damage
• Secure Storage: Lender must store personal property securely preventing theft, damage, or loss. Cannot discard items or allow storage facility employees to rummage through borrower belongings
• Retrieval Notification: Post-repossession notice must explain personal property return procedures—where to retrieve, business hours, identification required, deadline for pickup (15 days from repo)
• Reasonable Access: Lender must provide reasonable opportunities for retrieval—cannot demand borrower appear only during restrictive 2-hour window or charge excessive fees for access
• No Fees for Retrieval: Lender cannot charge "property return fees" or demand payment of cure amount before allowing personal property access—these are separate rights. Can charge reasonable actual storage costs if contract authorizes, but cannot use property as leverage forcing cure payment
• Abandoned Property Disposal: If borrower doesn't retrieve property within 15 days and doesn't cure loan, lender can dispose of items per Nevada abandoned property laws—typically requires additional notice and waiting period before disposal. High-value items (laptops, jewelry) require special handling with longer retention periods

Borrower Strategy: Nevada borrowers in Paradise, Sunrise Manor, or Whitney should retrieve personal property immediately after repossession regardless of cure payment intentions. Waiting until Day 15 risks property loss if borrower ultimately cannot afford cure payment—then must negotiate property return separately. Early retrieval also allows borrower to photograph vehicle condition documenting any repo-related damage lender caused, preserving evidence for potential wrongful repo claims[web:3].

Bankruptcy Impact on Cure Rights and Repossession

Borrowers filing Chapter 7 or Chapter 13 bankruptcy after vehicle repossession may recover vehicles through bankruptcy automatic stay and redemption/reaffirmation procedures—providing alternative to Nevada's 15-day cure period with potentially more favorable terms. Bankruptcy filing immediately halts all collection activity including auction sales, giving borrowers additional time to structure affordable payment plans or redeem vehicles at current market value rather than full loan balance.

Bankruptcy Automatic Stay (Chapter 7 and 13):

• Immediate Sale Halt: Filing bankruptcy petition creates automatic stay preventing lender from selling repossessed vehicle until bankruptcy court grants relief from stay or case concludes
• Post-Repo Filing Effective: Borrower can file bankruptcy after 15-day cure period expires but before sale occurs—still protected by automatic stay requiring lender return vehicle to borrower's possession pending bankruptcy resolution
• Adequate Protection Payments: Bankruptcy court may require borrower make "adequate protection" payments to lender during stay period (typically monthly payments compensating for vehicle depreciation while borrower retains possession)

Chapter 7 Bankruptcy (Liquidation):

• Redemption Right: Borrower can redeem vehicle by paying current wholesale market value (not full loan balance) in lump sum. Example: $18,000 loan balance, vehicle wholesale value $12,000 = borrower redeems for $12,000 cash, wiping out $6,000 deficiency through bankruptcy discharge
• Reaffirmation Agreement: Borrower signs new contract with lender reaffirming original loan terms (or negotiated modifications) agreeing to continue payments outside bankruptcy protection. Allows borrower keep vehicle but remains personally liable if later defaults
• Surrender Option: Borrower voluntarily surrenders vehicle to lender; deficiency balance discharged through bankruptcy with no further liability. Clean slate without repossession on credit report post-bankruptcy

Chapter 13 Bankruptcy (Reorganization):

• Cramdown Provision: For vehicles purchased 910+ days before bankruptcy, borrower can reduce loan balance to current vehicle value through Chapter 13 plan. Example: $20,000 balance, vehicle worth $14,000 = plan reduces secured debt to $14,000; remaining $6,000 becomes unsecured debt paying pennies on dollar. Dramatic savings compared to reaffirming full $20,000
• Cure of Arrears: Chapter 13 plan allows borrower catch up on missed payments (cure arrears) over 3-5 year plan period while resuming regular monthly payments. More affordable than Nevada 15-day lump sum cure requirement
• Forced Vehicle Return: Lender must return vehicle to borrower upon Chapter 13 plan confirmation if plan provides for continued payments—even if vehicle was repossessed months before bankruptcy filing

Nevada borrowers should consult bankruptcy attorneys if cure rights unaffordable but vehicle essential for work. Filing bankruptcy within 15-day cure period or shortly after provides powerful tools recovering vehicles on better terms than Nevada state law offers. Consumer bankruptcy attorneys in Las Vegas/Henderson typically charge $1,500-3,000 for Chapter 13 filings—worthwhile investment when vehicle necessary for employment and loan balance substantially underwater.

Lender Compliance Best Practices for Cure Rights

Nevada auto lenders and repossession forwarding companies must implement systematic procedures ensuring strict compliance with 15-day cure period requirements—violations create liability exposure, deficiency judgment defenses, and reputational damage in consumer finance community. Following best practices protects lender rights while respecting statutory consumer protections.

Recommended Lender Cure Period Procedures:

• Automated Calendar Alerts: Loan servicing system automatically calculates Day 15 deadline from repo date, blocking sale authorization before deadline expires. Manual override requires supervisor approval with documented justification
• Immediate Notice Mailing: Post-repo notice mails within 24-48 hours of receiving repo confirmation from field agent—don't wait 7-10 days. Early mailing ensures borrower receives maximum cure period time
• Itemized Cost Disclosure: Reinstatement statement itemizes every charge component with supporting documentation (repo invoice, storage rate sheet, late fee calculation per contract). Transparency prevents disputes and demonstrates good faith
• Multiple Contact Methods: Mail certified notice + call borrower + send text/email if contact info available. Multi-channel approach ensures borrower actually receives cure rights information despite mail delivery issues
• Spanish Language Materials: Maintain Spanish translation of post-repo notice for Nevada's significant Hispanic population. Offer bilingual customer service for cure payment inquiries
• Payment Processing Flexibility: Accept certified checks, cashier's checks, money orders, wire transfers, credit cards (if system allows). Don't restrict to cash-only or in-person payment creating barriers
• Day 15 Business Hours Extension: If Day 15 falls on Saturday/Sunday/holiday, accept payment tendered on next business day as timely. Courts may find substantial compliance; lender gains goodwill
• Document Everything: Save copies of repo confirmation, notice mailing date, certified mail receipts, borrower contact attempts, payment receipt or rejection, vehicle return confirmation. Complete documentation defeats later claims

Staff Training Requirements: Collections personnel handling repossessed accounts need specific training on Nevada cure rights—misstatements about cure period length, payment requirements, or deadline consequences expose lender to liability. Annual refresher training should cover: calculating 15-day period, explaining allowable costs, processing cure payments, handling Day 15 weekend scenarios, recognizing bankruptcy automatic stay, documenting compliance efforts.

For Nevada lenders requiring notice delivery and cure right documentation services: https://lakemeadmobilenotary.com/book or call/text (702) 748-7444 for professional documentation delivery services ensuring compliance with Nevada repossession notice requirements.

This content is for informational purposes only and does not constitute legal advice. Borrowers and lenders should consult attorneys for guidance specific to their circumstances.