TX Car - Not Repossessed, What options if any?

[timvines5640]

My in-laws purchased a car in Louisiana, and then moved to Texas, where they currently live. They are in their 60's and both are disabled and do not have a source of income. When father-in-law lost his job because of health reasons, they contacted the car company and asked to return the car to them; they could no longer pay for the car. The car company had sold the debit and in turn my in-laws contacted the new company. My in-laws informed the collection agency they could not pay for the car and wanted to return it. The collection company said they did not want the car; they wanted their money ($6,000), which unfortunately is not an option for the in-laws. The car still sits in their yard. My in-laws went as far as giving them their address so they could come and get it, still it sits there. They can't pay the debit, and now they are getting letters from lawyers saying they will be sued if they don't pay the debit in full. They do not have any type of retirement and no bank account. What they get from social security is barley enough to live off each month (approx. $1,000/month). Can they be sued and their social security be garnished? My father-in-law bought an old car for $500 to get to the grocery store; can it be taken as an asset if sued? They don't own a home, they rent, and they have no assets. What are their options if any?

[Ladynred]

Can they be sued and their social security be garnished?

They can be sued, but SS is EXEMPT.

My father-in-law bought an old car for $500 to get to the grocery store; can it be taken as an asset if sued?

It COULD but a judgment creditor isn't interested in junker, they can't get any money out of it.

They don't own a home, they rent, and they have no assets. What are their options if any?

There's really nothing that can be taken from unless they have a bank account, and even then if the SS is auto-deposited then the money would still be exempt.

The BANK or lender who holds the lien on the vehicle is where it needs to go back to as a voluntary repo. They could send them a letter stating if they don't come get the darn thing your in-laws will charge them $100/day storage fees.

I suspect your inlaws have little to worry about even if they were sued. TX is a very debtor-friendly state and with no assets, theres nothing for a creditor to take.

[timvines5640]

Thank you for your help! I really appreciate it!

[Zigner]

Originally Posted by Ladynred

The BANK or lender who holds the lien on the vehicle is where it needs to go back to as a voluntary repo. They could send them a letter stating if they don't come get the darn thing your in-laws will charge them $100/day storage fees.

Nope
Doesn't work that way. The RO would be responsible for those fees, not the lienholder.