[jose24]

My question involves an auto loan or repossession in the State of: Texas

My husband and I are thinking about giving up our truck, which we are very much upside down on. It costs more to maintain the truck, with gas and insurance then it does our house. My question is: If we let the truck go can they take our house? I don't see how they are connected in any way, but we are a young family of 4 one military and one slow job. We don't want to loose our house but in order to keep things running smoothly we need to get rid of the truck. We can't sell it for what we owe at all.

Thank you

[LawResearcherMissy]

If we let the truck go can they take our house?

No, but they can file to have your wages garnished and your bank account levied.

[cyjeff]

If you give up the truck, the bank will repossess the truck and sell it at auction to the highest bidder.

The difference from that amount and the amount you owe will STILL be owed by you.

You signed an agreement to pay the amount. The truck was merely the collateral that made that agreement binding.

If you get rid of the truck, the note obligation does not vanish.

You have a MUCH better chance of selling the truck yourself... but you will still owe the difference. It is just that you will have less to pay off.

HOWEVER, the bank may not allow you to sell the truck independantly. Because they know that once the truck is gone they have no way of holding you to your agreement outside of the collection process.

Call the lienholder of the loan. Tell them your story and see what can be done.

[Betty3]

Also, you could not sell the vehicle without the title.

[Betty3]

No, but they can file to have your wages garnished and your bank account levied.

Texas
WAGE GARNISHMENT EXEMPTION: 100% of wages are exempt from garnishment except for such things as child support, student loans . . .
(100% exemption applies to "general" creditors)