Legal Question in Credit and Debt Law in Texas

Re: finance companies put a lien on my house??

When you allowed the vehicle to be repossessed, the finance company sold the car and applied the purchase price to the debt which left a deficiency which is what they are now trying to collect. Creditors cannot garnish wages in Texas. They can file suit against you and, most likely, obtain a judgment in their favor. At that point, they would have a judgment lien which, if recorded, would operate as a lien on all real property you own in the county in which the lien is recorded. In Texas, however, homestead is exempt from execution by creditors. So, technically, the judgment lien does not operate as a lien on your home. As a practical matter, however, when you sell your home, some title companies will require that any outstanding judgments be paid. It is really better to deal with this creditor and make some arrangement to pay this debt because I am certain it is reported negatively on your credit report and will hurt your ability to obtain credit until it is paid.