Simple tips to stop auto repossession in Texas

There are several ways to stop auto repossession in Texas. Although the Texas law allows lenders to repossess the vehicle you are financing in case you pay the premium one day late, most lenders would rather give you time to catch up with the payments you missed. Always bear in mind that the contract you signed upon purchasing the vehicle states that you need to pay the monthly payments on time and in case you fail to stick to this the lender has the right to take the vehicle. However, you can still stop repossession using the following tips.

1. Contact the lender

Call your lender and try to come up with a plan on how you would pay for the payment missed. By doing this, the lender might allow you to pay for the interest and have the missed payment deferred. Although the law in Texas provide the lender with the right to repossess the car after a single or late payment, cooperating with the lender might prevent this from happening.

2. Sell the vehicle

Another option that could stop repossession is by selling the vehicle. You only need to inform the lender about this and come up with an agreement. Always bear in mind that the lender holds the title of the car and informing him or her would be necessary in order for the new owner to receive the title of the vehicle.

In the event that you are not able to sell the car in a price that is equivalent to the amount you owe from the lender, you need to provide additional money to cope the payment up. By doing this, you would be able to obtain the title of the car and send it to the new owner. You also need to understand that informing the lender that you would sell the car is important because under Texas law, the lender could stop repossession for 30 days when you are trying to sell the vehicle.

3. File bankruptcy

Filing Chapter 7 or Chapter 13 bankruptcy can also stop auto repossession.  Chapter 7 bankruptcy however requires you to pay for the vehicle’s payment as soon as bankruptcy is completed.  Chapter 13 on the other hand allows you to pay for the vehicle in lower amounts and in longer period.

In addition to this, Texas law allows you to keep one of your cars in case you own two or more in the event that you filed bankruptcy. You cannot keep both vehicles unless there is another licensed driver living with you.

Free Auto Credit Score

Know YOUR Auto Credit Score?

Free Credit Score

Auto Loans

Get Financed Regardless of your Credit