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I am in the United States of America, specifically Colorado.

I have an auto-loan.

I made a living by delivering Chinese food, pizzas and burritos for a company.

I crashed my car and I cannot deliver food anymore as the company does not supply company-owned vehicles.

I stopped making loan payments and I understand that something unpleasant will happen to me, but I do not know what a "Notice of Right to Cure Default" is.

What is a "Notice of Right to Cure Default"?

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  • Ordinarily a car loan includes a requirement that you have adequate car insurance in place to either pay off the loan (if the vehicle is totaled) or to repair the vehicle and get a loaner vehicle in the meantime, if it is not. If you have insurance, that would often provide you with the means to cure the default in the loan payments. If you don't, you have been violating the loan agreement and living dangerously for a long time. – ohwilleke Jan 28 at 1:30
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The Notice of Right to Cure Default under CO Rev Stat § 5-5-110 (2016) is explained in plain English here

In Colorado, the lender must wait until the debtor is in default for at least 10 days before the lender can send a “right to cure” the default. A “right to cure” simply informs you of your opportunity to make up the missed payments and stop the repossession process in its tracks. However, if you have already been in default during the prior 12 months and the lender has already sent one “right to cure” notice, then the notice does not have to be sent again. You have the right to get the notice just once per 12 month period.

After sending the “right to cure” the lender must wait for an additional 20 days for you to cure the default. If you have not cured the default by the end of the 20 days, the lender may repossess the vehicle. (Again, be careful if you have already received one “right to cure” in the past year. They get to skip these steps and go right to repossession if that is the case.)

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    Just a note to the question asker in relation to the above answer - in your case, repossession is unlikely to be the end of this, as you have crashed your car. Depending on the damage to the car, its possible that the residual value of the car is now less than the outstanding loan amount, which they can pursue you for. Seek advice on this now. – Moo Jan 27 at 21:04
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    Often, in addition to other remedies, a notice to cure will also act as an indication that the entire debt is going to be called due and owing immediately (acceleration of the debt) and that default interest rates, collection costs, and other penalties will be applied if they haven't been already. – ohwilleke Jan 28 at 1:27

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