Can a car finance company sue you if the car was repossession?

UPDATED: Sep 30, 2022

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Can a car finance company sue you if the car was repossession?

About 9 years ago, I had car repossessed. New Link Destination
day I was told that I’m being sued for that car’s

price, plus interest. Now 57k. They talked about putting a lien on my home, as well as my pay and tax returns. Is this even legal to do when they resold that car?

Asked on October 11, 2016 under Bankruptcy Law, Texas


B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It sounds like you have a bad debt collector coming after you.  If the car was repossessed  nine years ago, then the statute of limitations has probably run and they may be time barred from collecting.  Even if they have the right to collect, they cannot put a lien on your homestead.  Homesteads are constitutionally protected from consumer liens like the one you describe.  Debt collectors are prohibited by state and federal debt law and deceptive trade laws from threatening acts that they are not permitted to threaten.  The threat to put a lien on your home is a violation of those laws.  You can hire an attorney to assist you.....  But you can and should also file a complaint with the Texas Attorney General and FTC.

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