AUTO DEFICIENCY LAWSUITS
Texas Auto Deficiency Lawsuits After Repossession
What happens after a repossessed vehicle is sold and a lender claims that money is still owed.
An auto deficiency is the balance a lender claims remains after a financed vehicle is repossessed and sold. The lender generally applies the sale proceeds to permitted expenses and the loan balance, then may seek payment of the amount it says is still due.
Texas law governs the lender's notice and disposition of the vehicle. The sale must be commercially reasonable, and the claimed deficiency may include or be affected by principal, interest, repossession expenses, sale proceeds, payments, credits, refunds, insurance payments, or optional products connected to the loan.
A repossession does not necessarily end the financial dispute. A lender or later purchaser may file a lawsuit seeking the alleged remaining balance. The case may be resolved through dismissal, settlement, an agreed judgment, trial, or another court ruling.
Logie Law Firm handles qualifying Texas auto deficiency lawsuits. The firm does not handle bankruptcy, student loan debt, alimony debt, or child support debt matters.