Legal Question in Credit and Debt Law in Texas

Voluntary repo of Deceased's auto

Dad died.Had leased auto in his name only.There is no estate; no home, no other valuable possessions other than personal belongings.Contacted bank for options to keep auto.Were told Mom could not continue to pay notes & keep auto.She must refinance under her name & credit.Her income would not permit that. Next option was to pay balance in full & change title over to her. Income would not allow that either. Only other option, according to bank, was to return auto & since Mom's name was not on the lease, she would not be responsible for payment.We offered to take auto to where ever they wanted it & they said they would take care of it.They took vehicle & are now pursueing ''repo'' of auto under the Estate of Dad(which there isn't).They plan to sell at private auction in AZ or someplace & make Estate liable for balance of lease. #1)Can they sell at private auction in TX?I understood, in OH, it must be public due to the fact that I can't send bidders to auction, which might increase the selling price & reduce balance due. #2)Can they pursue Mom for balance (as Estate) since there is no estate? #3)On a lease, if they have the auto back, under these circumstances, isn't that the end of it?


Asked on 2/03/04, 11:01 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Voluntary repo of Deceased's auto

Unfortunately, the matter isn't clear-cut. The debt is a community debt in Texas, so they may look to your mother if there's nothing in the estate. If there's a lawsuit for the deficiency, they'll have to prove that the sale was commercially reasonable in order to support the deficiency.

Taking back the vehicle doesn't necessarily void the obligation for the balance of the lease.

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Answered on 2/04/04, 10:32 am


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