A statute called the Texas Business and Commerce Code Section 9.609 says a creditor can use self-help repossession but can only seize collateral if it can be done without a breach of the peace, according to Weber Law Firm, P.C. Getting a court order or filing a lawsuit are other options for creditors.Know More
A license is not required in Texas to conduct repossessions, says Allmand Law. Texas law specifies that a vehicle may be repossessed even if payments are only a few days late. The creditor is not required to go to court or give any advance notice. The repossession can occur on a person's property as long as the property is not damaged or destroyed.
A definition of breaching the peace is not included in the statute so the courts have tried to forge a workable definition, relying on previous cases from other states, notes Weber Law Firm, P.C. Conduct that may incite public turbulence or lead to a loss of order and tranquility is one such example. Noting that violence or a disturbance must be reasonably likely and not just a remote possibility, a repossession attempt must be stopped if it is verbally or otherwise contested, and there is no breach when a vehicle is repossessed on a public street and the debtor is in the house.Learn more about Debt Law
Car lenders in Missouri can repossess a car, try to sell it and then collect the difference between the sale price and remaining loan balance, according to Nolo. Lenders can repossess a car without a court order in Missouri, notes attorney Douglas B. Breyfogle.Full Answer >
Vehicles in California can be repossessed after a default in the contract of just one day, including a missed payment or a lapse in car insurance, according to attorney Jay S. Fleischman. Car finance companies and a registered repossession company can take away a vehicle.Full Answer >
In Alabama, something purchased on credit or something offered as collateral can be repossessed, but there are several laws outlining how this can be done, states AlabamaLegalHelp. These laws revolve around a signed agreement between a purchaser and a creditor and provide limits and obligations for both.Full Answer >
Collecting a default judgment in Texas is possible through a garnishment lawsuit, abstracts of judgment or through the debtor's simple payment, according to the Law Office of Tom M. Thomas II. A debtor with a default judgment in Texas can choose to pay the debt owed immediately to avoid facing other legal actions.Full Answer >