When the collateral securing your loan is a vehicle, a piece of equipment, business inventory, or other personal property, the foreclosure rules that apply to real estate do not apply. Personal property repossession is governed instead by the Uniform Commercial Code, which sets out its own procedures, and the consequences of getting those procedures wrong can be costly enough to wipe out your recovery.
We handle the entire repossession and disposition process for creditors throughout Texas.
Repossession Basics
A secured creditor has the right to take possession of the collateral after default, as long as the repossession can be accomplished without a breach of the peace. After repossession, the collateral must be sold in a commercially reasonable manner. Read more about repossession basics.
Notice Before Selling Repossessed Collateral
Before selling repossessed collateral, the creditor must give the debtor proper written notice. Skipping this step, or doing it incorrectly, can cost you the right to collect the remaining balance after the sale. Read more about notice requirements.