In Texas, if you voluntarily surrender your car to the lender, the lender may still be able to sue you for a deficiency judgment. A deficiency judgment is the difference between the amount you owe on the loan and the amount the lender can get for the car by selling it at auction.
If the lender sues you for a deficiency judgment, they must first obtain a court order. If the court finds in the lender's favor, they may enter a deficiency judgment against you. This judgment can be enforced by garnishing your wages or seizing your property.
Charging the Deficiency Judgment to Your Credit Card
If the lender has a deficiency judgment against you, they may be able to charge the amount to your credit card without your permission. This is because most credit card agreements contain a provision that allows the lender to charge any outstanding debts to your card if you default on the loan.
If the lender charges the deficiency judgment to your credit card, you will be responsible for paying the amount, even if you did not authorize the charge. You may be able to dispute the charge with your credit card company, but you will likely have to pay it unless you can prove that the lender was not authorized to charge it.
Avoiding a Deficiency Judgment
If you are considering voluntarily surrendering your car to the lender, you should speak to an attorney first. An attorney can help you understand your rights and options and may be able to help you avoid a deficiency judgment.
Here are some tips for avoiding a deficiency judgment:
* Make all of your car payments on time.
* If you are struggling to make your payments, contact your lender and see if they can work with you.
* If you are behind on your payments, do not surrender your car voluntarily. Instead, let the lender repossess it.
* If the lender repossesses your car, you may be able to redeem it by paying the full amount of the loan plus any repossession fees.
If you follow these tips, you may be able to avoid a deficiency judgment and keep your car.
