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Collections Law/Can I get sued.
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Question
I bought a 30,000 dollar car 2 years ago . I kept it for 1 year and couldnt afford it anymore. I had the car repoed voluntarily. The car company had it picked up and sold for 20,000 dollars . They sent me the balance for 12,000$ for recovery fees . I paid 2,000 of it but cant afford to pay the rest. I am now in collection for this . My question is can the collection agency sue for this balance owed. I live in texas and purchased the car in texas.
Yes, they can sue for the deficiency. It may be difficult for them to collect their money though. TX restricts garnishments of pay checks so they may not be able to get their money other than to attach checking and savings accounts and other assets. Keep balances low in checking and keep a low profile and don't apply for any credit until this is resolved. You may offer them a lump sum settlement or payment plan to avoid a judgment.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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