Legal Question in Credit and Debt Law in Texas

Re: Repossession

When a vehicle is repossessed, the finance company sells it, applies the selling price to the debt. You are still responsible for the difference. You signed a contract promising to pay a certain amount for the vehicle and are responsible for the amount in the contract. There are some possible defenses, such as, after you turned the car in, did they send you a letter telling you what the amount of the debt was and when they were going to sell it? If they did not, then you have a good defense and a cause of action against them. In Texas, the Texas constitution does not permit general creditors to garnish wages. The only garnishment permitted in Texas is the IRS, child support & federally guaranteed student loans.