Thank you for submitting your important legal issue to Just Answer. I am pleased to have the opportunity to provide you with an honest and easy to understand answer to your question.
I am an attorney licensed in the State of Texas. The following information is a brief answer to your question. However, if you feel that you need further information or that you have other insights which might help me in providing a better answer, please feel free to write back.
Repossession of your vehicle has a number of reprcussions. The first is that it will drastically affect your credit score, and most likely prevent you from obtaining credit or financing for quite some time. Depending on the terms of your financing agreement, the Finance Company could still sue you and seek damages. The car was collateral on the loan
, but you still promised to pay back the loan. Accordingly, the Finance Company could assert that it received damages in the amount it was charged to actually achieve the repossession of your vehicle and the efforts it has undergone to collect the over due amount from you.
Once the vehicle has been repossessed, the Finance Company can choose to sale the vehicle or to keep it as payment on the debt you owed. Either way, you are likely to be liable for the amount of the debt that was not satisfied by the repossession. If the Finance Company chooses to sale the car, you have the right to attend the auction and buy the car, or the you may have the right to pay the entire price remaining on your finance agreement, plus damages (storage fees, attorney fees, repossession fees, etc.)
For more information on repossessions, please see: http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut14.shtm
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The information provided is general in nature only and should not be construed as legal advice. By using this forum, you acknowledge that no attorney-client relationship has been created between you and Zachary D. Norris or The Norris Law Firm. For complete legal advice and representation
, you should consult with an attorney licensed to practice in your state.