Legal Question in Credit and Debt Law in Texas
Auto Loan Collector Ready to Repossess My Vehicle
Due to a death in my husband�s family late last year and helping with past debt of the deceased and funeral expenses, me and my husband have fallen behind on some of our bills. We have been trying to "play catch up" on our auto loan (just one of the payments we are behind on). Currently, we are past due on May & June�s pymt. We made � payment on May�s payment today. My husband spoke to loan company yesterday; he told them we would pay � today, � next week (which would pay May's payment), � the following week & so on until we are caught up. Today when my husband called to give them the payment information & tell them he made the pymt as agreed, the person he spoke to said he misunderstood my husband�s terms to catch up and that it was not an acceptable term. Can they still repossess our car if we are making payments and making an effort to catch up on our payments? What is the default time that a loan company can repossess? I was told we had to be three payments behind for them to start the repossession process. We are not trying to default on our loan and have no intentions of backing out on our commitment to them. We have told them from the start of the situation and have been honest about everything.
1 Answer from Attorneys
Re: Auto Loan Collector Ready to Repossess My Vehicle
The matter is governed entirely by the terms of your sales contract with the dealer and the terms of your financing agreement with the loan company. Whatever those documents say about the payment schedule and the due dates and amounts of payments will control. You are not free to alter the terms unilaterally no matter how desperate your financial circumstances.
It may be time for you to consider consulting a credit protection agency. They are available everywhere on the net. They will negotiate with your creditors to obtain reductions in your payment obligations, extensions of time to make payments, and generally calm them down so that you are not constantly faced with the threat of repossession.
Also, consultation with a bankruptcy lawyer could be helpful so you can understand a reorganization plan to assist you at this time.
Best of luck to you.
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