Legal Question in Credit and Debt Law in Texas

Repo Procedures

I financed a car through a 'second chance'finance company (even though it was my first car). Now, due to permanant disability I am unable to pay for the car. I am 2 months behind but they have given me some help in the past year by tacking a months payment onto the end of my loan and calling it current. They are threatening reposession now although they will not give me a time or date. I would like to know what the likelyhood of them actually coming to get the car is. It is a 5 year old car with some body damage and more that normal mileage. I am also upside down on the loan. I obligated myself to the debt regardless of the new circumstances: however,given the disability and my willingness to pay the debt,doI have any recourse or are there any suggestions for how to proceed? I have also asked repeatedly, while I was current, to lower the interest rate which is 23%. If the interest rate was lowered I could defintely become current and stay that way. The company repeatedly refused and I feel that I am being backed against the wall by the situation. I want to fulfill my obligation on the debt I just need some reasonable consideration Can you offer any suggestions PLEASE? Thank you so much for your time


Asked on 5/01/06, 1:07 am

1 Answer from Attorneys
TC Langford Langford Law Office

Re: Repo Procedures

Unfortunately, they are very likely to repo the car. Hopefully you have had this straightforward conversation with the company. If it doesn't help, have you made effort to make partial payments on the car. Sometimes, since you are upside down on the loan, a regular series of partial payments will forestall repo, until you are able to become current.

If you are absolutely unable to make payments, and they intend to pick up the car, offer to return the car. It looks a little better on your credit, when you are able to apply for purchase on another one.

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Answered on 5/01/06, 6:50 am


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