Legal Question in Credit and Debt Law in Texas

car repossession and repayment

Purchased a vehicle 3 years ago, and was doing ok on payments. After a year, was layed off, and all went downhill from there. had problems paying several times, but was able to work out with the finance company. in February of this year, just could no longer pay do to lack of job, and they had it picked up when I told them this. It was sold at auction, with a remaining balance of $6000. After a month, a ''lawyer'' called and said that I had to pay balance or else. I am paying currently. My question is that if I decided I did not want to pay it, what could I expect to happen. Would I have to go to court, and what would happen. Could my wages be garnished, or would it just put a judgement on my credit report, and I would not have to pay until I got the money.


Asked on 8/10/05, 9:27 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: car repossession and repayment

Its probably already on your credit report as a repo with a balance due. If you stop paying, they can sue you and obtain a judgment. There is no garnishment of wages by general creditors in Texas. If they obtain a judgment they can garnish your bank account. The judgment would be good for ten years, earning 5% interest a year and can be renewed for another ten years. If you get in a position to do so, you might consider offering thema lump sum to settle it (something less than the remaining balance) but make sure any agreement includes some change in how it is reported on your credit report. Best would be "paid as agreed" which they probably won't agree to, but they might delete the tradeline or at least say "paid as settled"

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Answered on 8/10/05, 10:00 pm


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