Preventing Repossession During Bankruptcy in Dallas

In the state of Texas, according to the Business & Commerce Code, 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.” In other words, your vehicle can be repossessed if you stop making payments. There does not have to be a court order.

Although your creditor can take possession of your car without notice, they cannot breach the peace during the vehicle repossession. That may mean making a lot of noise, using physical force to get your keys, or breaking into your garage. If your lender or a company working on their behalf breaches the peace while repossessing your car, you may have a claim against them through a deficiency lawsuit.

Understanding your rights is the first step toward preventing vehicle repossession during bankruptcy in Dallas.

Your lender may either keep your car or sell it to put the money towards your loan. However, the lender must notify you of its actions. You are allowed to know when and where the sale of the vehicle will take place. If you have questions about what happened to your vehicle, a skilled Dallas lawyer can help you understand your options for preventing repossession during bankruptcy.

The lender must sell your car in a manner that is considered commercially reasonable. This involves standard practices and an attempt to obtain the highest price possible. If your lender does not act in a commercially reasonable manner, you may be able to file a deficiency claim against them.

If you default on a car loan, you may face vehicle repossession. If the vehicle is sold, your lender will apply the proceeds towards your loan balance. However, if the sale of the car does not cover your entire loan balance, you may have a deficiency balance. Your lender may still require you to pay the remaining deficiency balance.

If you’re worried about losing your car or being left with a deficiency balance, an attorney in Dallas can guide you through strategies for preventing repossession during bankruptcy.

If there is a deficiency balance left over after your lender sells your car, you may be able to fight their collection efforts. You can file a deficiency lawsuit against your lender if any of the following apply. The lender:

• (or the company working for the lender) breached the peace during vehicle repossession;
• did not act in a commercially reasonable manner; or
• did not sue you before the statute of limitations (time limit) established by law.

A deficiency lawsuit can be complicated. It requires legal documents, court hearings, and negotiation with the lender. In all of these situations, a vehicle repossession lawyer in Dallas can help you. Allmand Law Firm, PLLC can handle the legal issues while you try to regain your life.

You can have confidence in the team at Allmand Law Firm, PLLC. We have helped tens of thousands of clients over our nearly 15 years in practice. Our lead counsel, Attorney Allmand, has a Superb Rating on Avvo and is certified in Consumer Bankruptcy by the Texas Board of Legal Specialization. You can rely on us during this difficult time.