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Texas Repossession

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Texas Repossession

If you car or truck was repossessed; you CAN STOP IT IN TEXAS!  Even AFTER repossession,  you CAN GET YOUR TRUCK back. Do not despair. We utilize Chapter 13 bankruptcy to get your car or truck back because even if it has been Texas repossessed, you still retain a possessory interest in the vehicle through your right to redemption.

As the Texas repossession laws below show, your lender cannot sell you vehicle for 10 days. Within that 10 days, you have the right to redeem your default. This means you have the right to bring the past due amounts current. Once you do, you get your truck back. However, most people don’t have the money to bring the loan current.

In that case you file for Chapter 13 Bankruptcy protection. When you file chapter 13 bankruptcy within 10 days of the Texas repossession, you can demand your vehicle back. Naturally you will have to provide proof of full coverage insurance, but that is all you need. Any repossession fees and/or storage charges will be rolled into the loan amount you pay back in your chapter 13 bankruptcy payment plan. As your attorneys, we work to get your truck back.

In the Chapter 13 bankruptcy, you pay off the amount that is left to be paid on the loan, plus generally 5.25% interest. And once your payment plan ends, you will get the title to your vehicle. Remember: One of the advantages of filing chapter 13 bankruptcy to stop Texas repossession is that You never have to deal with your lender again! By hiring us as your attorneys, we will deal directly with your lender and/or their attorney to get your car or truck back. It does generally take a couple of days, so we ask that you be patient.

Please see our earlier post on the Demand Letter we send your lender.

Texas Repossession laws

Texas Repossession: If you are not current with your truck payments, your lender has the right to Texas repossess the vehicle or render it unusable.  Your lender can sue you in court to recover it or take it from you as long as the repo man doesn’t breach the peace.  See Texas Business & Commercial Code Sect. 9.609

Sale/Auction: Your lender can sell your truck in a commercially reasonable manner at an auction or other type of sale.  See Texas Business & Commercial Code Sect. 9.610

Required Notifications: Before your lender can sale your truck, they MUST notify you of their intentions. You can waive this right, so make sure you don’t sign anything the lender gives you until you consult with your lawyer.  See Texas Business & Commercial Code Sect. 9.611

Timing of Notification: Your lender must send the required notification after your default and 10 days within the disposition of the vehicle. See Texas Business & Commercial Code Sect. 9.612

Content of Notice: The notice must list your name and the collateral that the lender intends to sell. It must state how much money it would take to REDEEM or reinstate the loan. It must provide a telephone number to call to redeem the loan. It must state how they plan to dispose of the truck and tell you that you are entitled to an accountable of any debt remaining after the sale. The lender must tell you the time and place of the auction (or other manner of sale). It’s pretty easy for lenders to follow this rule – the form is listed in the statute. See Texas Business & Commercial Code Sect. 9.613 and Texas Business & Commercial Code Sect. 9.614

Right to Redeem Car or Truck:  You have the right to redeem your vehicle even after Texas repossession. To redeem the loan default, you have to pay whatever is owed through that date, the reasonable expenses like repo fees, storage costs and attorney’s fees. You have the right to redeem the vehicle up until the actual sale date and time.  See Texas Business & Commercial Code Sect. 9.623

Lender’s Failure to Comply: If the lender fails to follow the Texas Repossession laws, then it may be liable for damages and costs that you incur. Or you may be able to recover $500 for each statute violation. Or you may be able to eliminate any deficiency owed on the truck loan after the sale. See Texas Business & Commercial Code Sect. 9.625

Getting Bankruptcy Help

If you need to stop Texas repossession, we can help you. If you do not have enough money to redeem the loan and bring it current, we can help you. When you are trying to recover a repossessed vehicle, it is not a road you want to travel alone. You need the assistance and advice of experienced bankruptcy counsel to help you get your car or truck back.

Please visit our website for more information about us and bankruptcy. You may also view our video with Bankruptcy Information.

Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at consumerlaw@busby-lee.com.

We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.

We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton