Imagine this: you walk outside one morning to find your car missing. Panic sets in as you realize your vehicle has been repossessed. In Texas alone, thousands of vehicles are repossessed each year.
If you’re facing the possibility of repossession, you’re not alone. But before despair sets in, understand that you have rights, and there are steps you can take.
This blog will guide you through the repossession process in Texas, explore your legal rights, and outline potential solutions to prevent repossession or negotiate with your lender.
Understanding Your Rights in Repossession
Repossession occurs when a lender reclaims a financed vehicle (car, truck, etc.) because the borrower defaults on loan payments. Texas law dictates how repossession can occur. Here’s a breakdown of your rights:
- Peaceable Repossession:The lender or a repossession agency can repossess your vehicle only if done peacefully and without breaching the peace. This means they cannot use force or damage your property during the repossession.
- Right to Notice (Depending on the Loan):In some cases, Texas law requires the lender to send a written default notice before repossession. This notice outlines the delinquency and the potential consequences, including repossession.
- Rightto Get Your Vehicle Back:Â Even after repossession, you still have the right to get your car back by paying the outstanding loan balance, any repossession fees, and storage charges. However, you’ll need to act quickly, as the lender can sell the vehicle at a public auction to recoup their losses.
Taking Action to Prevent Repossession
Facing repossession can be stressful, but you have options. Here are some steps you can take:
- Contact Your Lender Immediately:Open communication is key. Explain your situation and explore options for catching up on missed payments.
- Negotiate a Repayment Plan:Lenders are often willing to work with borrowers facing financial hardship. Discuss the possibility of extending the loan term, lowering the monthly payment, or restructuring the loan altogether.
- Consider a Repossession Attorney in Texas:A repossession attorney in Texas can advise you on your legal rights and explore options to prevent repossession or negotiate with your lender. An attorney can also ensure the repossession was conducted legally and fight for a fair price if the car is sold at auction.
Exploring Alternatives: Chapter 13 Bankruptcy
While Joel Gonzalez of the Law Office of Joel Gonzalez doesn’t handle Chapter 12 or 11 bankruptcy, Chapter 13 can be a powerful tool to prevent repossession.
Chapter 13 bankruptcy allows you to create a court-approved repayment plan to catch up on missed payments and potentially save your vehicle. Under Chapter 13, you make monthly payments to a court-appointed trustee who distributes the funds to your creditors, including your car loan lender. An attorney specializing in bankruptcy can help you determine if Chapter 13 is the right option for your situation.
Facing Repossession? Don’t Wait. Contact a Repossession Lawyer in Corpus Christi
Repossession can have a significant financial impact and create transportation difficulties. If you’re facing repossession in Texas, don’t wait. Understanding your rights and taking action quickly can make a difference.
Contact Joel Gonzalez, a repossession lawyer in Corpus Christi, for a consultation. He can review your situation, explain your legal rights, and explore options to prevent repossession or negotiate with your lender. With his experience and knowledge of Texas repossession laws, Joel Gonzalez can help you navigate this challenging situation and work toward a positive outcome.
