Legal Question in Credit and Debt Law in Texas

Voluntary Auto Reposession

I was advised by two auto dealers last year that since I owed such a substantial amount of money against my auto that I couldn't use it for a trade in and could no longer afford the payments on it, that I should do a ''voluntary repossession''. I took them at their word and did just that. Now I have received word from the finance company that they sold it for $6000 less than what was owed for it and that I owed the difference. I am a single mother and have no way of paying the debt back. I am being contacted by a collection agency daily. Am I responsible for this debt and what should I do? Should I set up a payment plan and if so, would they be willing to accept a small amount per month? I'm afraid when I get my income tax refund next year they will take it. Also, I work for the state of Texas at minimal wage and can they freeze my checking account? I'm even thinking about filing bankruptcy. Please advise.


Asked on 12/06/04, 3:16 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Voluntary Auto Reposession

Yes, you owe the money. No, they cannot take your IRS refund, at least, not until they get a judgment against you. Same with checking account. It is probably already on your credit report. They may file suit to collect the deficiency and attorney fees, but they may not. You can send the collection agency a letter telling them to cease and desist from any and all communications with you, that you prefer, as is your right under law, to deal with the original creditor. They SHOULD stop contacting you after that.

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Answered on 12/06/04, 3:48 pm


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