Voluntary Surrender

cj25 · #1 07-14-2006, 02:58 PM

My wife and I are currently upside down in 2 vehicles, and we are at the point where we are no longer able to make pymts on the vehicles, since she has lost her job, and we are not able to refinance them at this time. We've also attempted to sell them, but we have not been fortunate to. We have also filed Chp7 bkty 2yrs ago, and voluntary surrendered a vehicle then, but no judgement was pursued then, since the vehicle was part of the bankruptcy.

If I voluntary surrender the vehicles, and I live in San Antonio TX, can they pursue to attempt to garnish my wages for the deficiency, and what other legal ramifications, may I possibly be facing??? Also, do the creditors have any rights to contact nearbys for skip tracing methods to try to attempt to reach us, after we have kept in contact w/them since the beginning of our ordeal, and we have sent them a cease and desist certified letter?

Thanks...
cj

Mr. Knowitall · #2 07-14-2006, 05:12 PM

Quoting cj25

If I voluntary surrender the vehicles, and I live in San Antonio TX, can they pursue to attempt to garnish my wages for the deficiency, and what other legal ramifications, may I possibly be facing?

Generally, there is no wage garnishment in Texas. Once they have a judgment they can otherwise seek to garnish or execute non-exempt assets, consistent with Texas law.

Quoting cj25

Also, do the creditors have any rights to contact nearbys for skip tracing methods to try to attempt to reach us, after we have kept in contact w/them since the beginning of our ordeal, and we have sent them a cease and desist certified letter?

If you try to 'disappear', they can be expected to try to find you.

cj25 · #3 07-14-2006, 05:37 PM

"Generally, there is no wage garnishment in Texas. Once they have a judgment they can otherwise seek to garnish or execute non-exempt assets, consistent with Texas law."

Sorry..but can you please define what you mean..

So if I voluntary surrender the my vehicles, are you saying I may still be liable for the deficiency?

At what point would they persue a judgement, and can you please explain what you mean when you say they may seek to garnish or execute non-exempt assets???

Thanks..I appreciate the feedback and information you are providing!

Mr. Knowitall · #4 07-14-2006, 06:11 PM

Quoting cj25

Sorry..but can you please define what you mean.

It means what it says - you should expect them to try to collect what you owe them.

Quoting cj25

So if I voluntary surrender the my vehicles, are you saying I may still be liable for the deficiency?

Obviously.

jk · #5 07-15-2006, 05:41 AM

Quote:

So if I voluntary surrender the my vehicles, are you saying I may still be liable for the deficiency?

It is not "may be liable" but "will be liable for".

Not only will you be responsible for the deficiency that you are aware of but since repo's autos are often sold at auction where they garner less than a retail sale, there will more than likely be a greater deficiency than you currently suspect.

It is real simple;

(what you owe) - (what is garnered at auction) = (what they are going to seek from you for payment).

cj25 · #6 07-15-2006, 07:06 AM

If they will seek from this total deficiency from me as payment, how long "legally" can they pursue to seek payment from me, before they sue me and what can they actually sue me for?(Any items in specific?) If I have no retirement, or savings accounts, w/the exception of 2 college funds that I have for my daughters? Also if Chrysler sues me in the states of Texas, does a Third Party, have the right to sue as well, if Chrysler decides to sell the Auto note to them? Will I more then likely be summoned to appear in court, if sued and If I am unable to repay what their demand, is their possible jail time?

jk · #7 07-15-2006, 07:21 AM

They can persue you forever if they wish. They can sue you and win anytime before the statute of limitations prevents them from collecting.

Whomever owns the debt can sue you. Once the debt is sold to another, it is no longer Chryslers to sue for. The new owner can sue you but the SOL will apply from the original default.

Jail time is only a possibility if you committed a crime in either securing the financing or prevented the creditor from taking possession of the security for the loan (car). We do not have debtors prisons anymore.

If you are sued, you will be notified and told of the action. If you do not show up in court, the creditor will win by default and a judgment placed against you. Off hand I do not know the time limit for collecting on a judgement but in some states it can be renewed and could possibly haunt you for a very long time (20 years or more).

Now when you say "college funds", are these an actual fund set up through a bank or the state or merely bank accounts designated by you for that purpose? If the latter, they would be subject to collections by the creditor.

As far as any other means of collections and what is available to the creditor, I will leave to others with more specific knowledge of Texas law.

I do not understand your comment of

Quote:

what can they actually sue me for?(Any items in specific?)

They can sue you for any money you owe them from the default of the loan. This may include collection costs including legal and court fees. Additionally, interest will probably be added to the entire amount when applicable.

cj25 · #8 07-15-2006, 07:38 AM

"Im sorry, what I meant by any items in specific, I am trying to understand the legalities of a judgment. If they can otherwise seek to garnish or execute non-exempt assets, consistent with Texas law" what does this actually mean? What items constitute as non exempt assets?

jk · #9 07-15-2006, 08:06 AM

Quote:

Generally, there is no wage garnishment in Texas. Once they have a judgment they can otherwise seek to garnish or execute non-exempt assets, consistent with Texas law.

Very simply put it means that they will try to get any money you have that Texas law allows them to. There is nothing specific within that statement and I have no specifics to offer you either. Just be aware that unless Texas law prohibits certain money you have from being taken, the collectors will try to take any money you do have. That is why the question of the cllege accounts. If they are merely accounts designated by you for a specific purpose (college), then these are probably available for collections purposes. They can only do this after they have recieved a judgement (from the court) confirming your debt to them.

Mr. K has apparent knowledge that Texas does not allow wage garnishment so your work income is apparently safe.