Legal Question in Credit and Debt Law in Texas
Debt owed on car reposession
Two years ago my husband and I both lost our jobs. As a result, we could not pay our bills and our car was repossesed.
We have recieved a very large bill from the car company with numerous fees and a ''deficiency balance due'' amount. Although my husband has recently found work, we are living on a fraction of our previous income and have no way of paying this debt. I am very worried about wage garnishment, potential leins against our home(our only remaining asset) and threatening phone call. Are we liable for this bebt? Do we have any rights? Can they garish my husbands wages and/or put a lein against our home? Thank you so very much for your time.
2 Answers from Attorneys
Re: Debt owed on car reposession
Creditors cannot garnish wages in Texas. The only exceptions are the IRS, child support and federally guaranteed student loans. Homes are exempt from creditors as well. You do owe the deficiency balance. They can sue you and obtain a judgment but sounds like they will not be able to collect. If a third party debt collector calls or sends a letter, you can cease a letter telling them to cease and desist from all communications with you, that pursuant to the Fair Debt Collection Practices Act, you prefer to deal with the original creditor. It will stay on your credit report for seven years from the date of last activity.
Re: Debt owed on car reposession
The only thing I would add to Ms. Campbell's reply is that if they sue you and take judgment against you, they can file an abstract of judgment which places a lien against the real property you own in the county where the abstract is filed. They can't force a sale but they do place a burden on the real estate.
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