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Repossession laws differ across the country.  State laws dictate how a repossession is handled in Texas. Austin 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 car or truck, the repo-man can come and take it with no judicial process if they can do so without a scene.

Can you get your car, truck or motorcycle back?

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.  Your right to your car, truck or motorcycle is limited.  You will usually have to bring the loan current and pay repo and storage fees. In some circumstances the lender may accelerate the note.

This means they want you to pay off the loan in full.  Once the deadline for redeeming is past the lender can sell your car and hold you responsible for the deficiency.  

That means you will still owe the balance of the loan for a car you do not have anymore.

Under your contract, you must not try to hide from or avoid the lender if you fall behind on the payments. The 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.  

If your car has already been repossessed you need to act immediately, once the lender sells your car there is no getting it back.
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