Legal Question in Credit and Debt Law in Texas
Automobile repossion
What are my rights if a vehicle is repossessed in Texas? If I volintarily turn the vehicle in to creditor and the contract sais that they can sell at auction and charge me for the balance. If they sell it at auction they will only get half of retail price and will stick me for the rest. Are they required to set up a payment plan for the balance owed and how do they come up with a figure for payment amount? Thanks
1 Answer from Attorneys
Re: Automobile repossion
If you voluntarily turn it in you've avoided adding repo fees of at least $750 to your bill. The vehicle will be sold at auction, for whatever someone is willing to pay for it. The auctioneer's fee is first paid. Then the balance is applied to your outstanding balance. You are liable for the unpaid balance.
See if you can work with the lender to set up a payment schedule, but bear in mind that they are under no obligation to do so; they can simply demand that you pay the rest in one lump sum.
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