Reposession
Repossession laws differ across the country. State laws dictate how a repossession is handled in Texas. Dallas area residents facing repossession of a car need to understand what the law is and what protections may exist for them.
The Business and Commerce Code in Texas, says that “the secured party has the right to claim possession of collateral upon the default of a loan unless other agreements were made in a legal contract.” This means that if you stop making payments on your vehicle, they repo-man can come and take it with no judicial process if they can do so without a scene.
You have the right to redeem the property, but only if you can work out an amended payment plan with the lender or pay the full amount owed on the loan.
Under your contract, you must not try to hide from or avoid the lender if you fall behind on the payments. The collateral, or vehicle, must be available for them to take possession.
Filing bankruptcy can stop repossession and help you pay off the debt owed on your car note.
