Car Repossession in Texas: What You Need to Know 

 Posted on November 28, 2024 in Bankruptcy

If you find yourself behind on your vehicle payments, you may be understandably concerned about your car getting repossessed. After all, in Texas, a car is often a necessity. When a car is repossessed, the lender takes possession of it. A Texas repossession defense attorney can help you if you are concerned about the possibility of losing your car, or are already facing repossession.

How Does Repossession Work in Texas?

In Texas, a lender has the right to repossess your car if you have defaulted on the loan you took on it. The law in the state is strict: a lender can typically repossess your car as soon as you default on the loan, from the moment you are late on a payment. There are a few things to know about Texas repossession law: 

• Creditors do not need to seek court approval to repossess your vehicle.

• A repossession agent may take possession of your car so long as they can avoid a "breach of the peace." This usually means that they can repossess your car without a court proceeding in a public area.

• To take possession of your car in a private area such as your home, a court may order you to give your vehicle to the lender or the lender may request a court order to get the sheriff to enforce it.

• You can reclaim your vehicle by paying the debt in full plus the repossession costs.

• After a car is repossessed, the lender can sell it at auction to recover what it can on the outstanding debt.

Will I Lose My Personal Property if My Car is Repossessed?

In Texas, lenders and repossession agents must allow you to take back any personal property that was in the car when it was repossessed. They must also provide you with written notice including a detailed list of the personal property found inside the car and your right to retrieve your belongings. If they do not do so, they may be liable for damages.

What to Do if You Are Concerned About Repossession

• Read your car loan agreement (or have a repossession attorney review it and advise you): The loan agreement will have the terms under which the lender may repossess your vehicle.

• Communicate with the lender: Often it is possible to negotiate a repayment plan with the lender if you are behind on your payments. Lenders are often willing to work with you to find a mutually agreeable solution such as loan restructuring or deferring payment. It is even possible to negotiate a "voluntary repossession." Although that is still not an ideal situation, it could be less stressful and costly than an involuntary repossession.

How Can Bankruptcy Help with Repossession? 

When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is imposed, stopping creditors from collecting on debts. This can make it less likely that you will lose the car, although bankruptcy is not an easy process and it has other legal ramifications that you should discuss with an attorney.

Contact a Brazoria, TX Repossession Attorney

Whether you are behind on your car payments and fear that your car may be repossessed, or your car has already been repossessed, we are here to help you through this stressful experience. The Houston, TX repossession lawyer has the experience needed to advise you on your rights if your car faces repossession. Call The Fealy Law Firm, PC at 713-526-5220 for a complimentary consultation today.