A statute called the Texas Business and Commerce Code Section 9.609 says a creditor can use self-help repossession but can only seize collateral if it can be done without a breach of the peace, according to Weber Law Firm, P.C. Getting a court order or filing a lawsuit are other options for creditors.
A license is not required in Texas to conduct repossessions, says Allmand Law. Texas law specifies that a vehicle may be repossessed even if payments are only a few days late. The creditor is not required to go to court or give any advance notice. The repossession can occur on a person's property as long as the property is not damaged or destroyed.
A definition of breaching the peace is not included in the statute so the courts have tried to forge a workable definition, relying on previous cases from other states, notes Weber Law Firm, P.C. Conduct that may incite public turbulence or lead to a loss of order and tranquility is one such example. Noting that violence or a disturbance must be reasonably likely and not just a remote possibility, a repossession attempt must be stopped if it is verbally or otherwise contested, and there is no breach when a vehicle is repossessed on a public street and the debtor is in the house.