Loan Default Legal Options

Summary

If you default on secured loans in Texas, lenders can seize your truck and equipment. Texas law limits post-default charges. Consider voluntary repossession or negotiating a settlement with your lender. Consult a local attorney for personalized advice.

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I have * loans that I pay insurance on for my truck and equipment. I have been placed on medication that dictates by law that I can no longer run the equipment. I am looking for some legal advice to help me get out from under these loans as gracefully as possible.
Hello **** ****. I understand your situation. To provide relevant advice, I need to know your location as laws may vary. Also, are the loans secured against the truck and equipment?
I'm not sure of the details of the loan insurances. I reside in Iowa Park Texas *
Hello **** ****.
- Texas law allows borrowers to surrender the property to their lender as a voluntary repossession.
- However, the lender may sell the property and you would still owe the difference if the sale doesn't cover the loan.
- Consult with a local attorney to explore your options.
Yes the loans are secured against the truck and equipment
Hello **** ****.
- Since your loans are secured, the lender may seize the equipment and truck if you default.
- However, Texas law limits the amount lenders can charge borrowers following a default.
- You may want to discuss the possibility of negotiating a settlement with your lender.