I live in Texas, can a creditor garnish or freeze my account?

Question

can they take the money out of my account? Can they sue me? What can they take?

I owe $10, 000.00 to a motorcycle company ( I returned it after I couldn't make any more payments and they send me a letter saying I owe them this money)

The repo was 2 years ago. at first it was a regular collection agency but now I don't know if they are trying to scare me but its from a law firm that says debt collection attorneys..... I made the mistake of buying this for someone else and now I'm stuck with the debt.... they have send me numerous notices.... I do not have money and I can't pay anytime soon my credit is really, really bad....

Answer 1

This is interesting as I am helping a family member who is going through the same thing in the same state.

Even the numbers match. Almost scary.

The long and short of it is, yes and no.

I know, just what you wanted to hear.

...but Texas consumer law does not allow too much for account freezes/ acquisition, wage garnishment and you will keep most of your possessions.

However, having said that, yes. They can sue.

I would have to get to my files at work (Where I talk to this relative at) to get the absolutes on what they can and can not take, and if you would like for me to, let me know.

The bottom line is, a motorcycle that is financed is usually done through a credit card. As such, it is an unsecured loan for all intents and purposes so fight it if you think what they are doing is wrong.

People getting scared of their tactics is what allows these people to do this.

Answer 2

Like the first poster said, they cannot garnish your wages.
To be safe, especially if you are dealing with a collection agency, you might want to take your money out of your bank account leaving just enough in there to keep it open. Then deal in cash for awhile.

Turning over the bike is considered a repo just as if they came and got it. Hopefully you did not sign anything that would have given your rights away when you returned it.

As far as suing, much depends on how long ago the bike was repo'd.
If it had been 4 years or longer, you would be out of the collecting SOL.
If they had failed to provide you with "all" of the required notices before and after the sale and within a reasonable time (generally within 2 years) it would be considered an illegal repo and non collectible.

The collecting and reporting SOL starts on the date the bike was sold creating the deficiency

Without knowing more about the situation - how long it's been, if they did or did not send the required notices, etc., that's about all I can say about it.