In the state of Texas, creditors do not have to give notice before repossessing a car due to missed payments or not having adequate car insurance, as of 2015, according to AVVO. However, some Texas laws require the car owner to be notified before the car goes up for sale, giving him the option to buy it back on his own.
In addition to missing payments, the creditor is also able to legally collect the collateral through repossession if the debtor went against the original contract, says AVVO. Not giving notice is often the method used by creditors so that the debtor doesn’t try to hide the vehicle before it is repossessed. The creditor can take it from anywhere they find it, including the debtor’s personal property or a public parking lot when the debtor is shopping.
By law, the debtor must relinquish the vehicle, according to AVVO. If he refuses, the creditor can issue a Writ of Sequestration, which is a court order to collect the vehicle after a hearing. It is easier and looks better on the legal record of the debtor if he voluntarily gives up the vehicle. It is also a crime in Texas to conceal property when there is a lien on it. The law requires the creditor to sell the vehicle in a commercially reasonable manner, which is often an auction.