My husband and I (reside in Texas) voluntarily surrendered a vehicle over a year ago to Triad. They contacted us after the sale of the auto with a balance left owing on the auto. They wanted us to pay this ungodly amount per month in exchange for a "settlement," which was not a possibility financially for us... if I could have paid that per month, I would have kept the auto! I explained that I could not pay this amount. Now, I have been contacted by a "law firm" representing Triad to collect the balance owing. Of course, they can "allow" me to pay only $400 a month for one month and $150 the next (which continues to alternate), for six months, "to give me time to recoup my finances" and then pay a higher amount. They say the amount of the balance is $8400 plus and then told me that they can take 35% of my wages to pay for this. I can't pay this. I can't afford to have wages garnished... and my employer does not like that. I've heard that I can deal directly with Triad, but since it has been such a lengthy amount of time, is that still true? Do they HAVE to take whatever I can pay them? Also, this "law firm" said they would get a judgment against me? What does that mean? Will I have to go to court? If so, do I go in my own county or where? What options do I have? I am willing to pay the balance... I made the note, but I cannot afford to pay a big amount. I HAVE to contact them today or they are going to "proceed with the necessary measures."

Whatever made you think surrendering the auto was the end of it? You borrowed x amount from a lender. That amount was then paid to the dealership for the car. The lender now wants their money back. They took the car and sold it at auction not really caring what they got for it. The proceeds of the auction were applied towards your balance but you are STILL responsible for that balance.

Yes they can sue you and get a judgement and garnish your salary (unlikely they can get 35%, most states cap garnishments at 25%). They can also attach bank accounts and other assets.

And you want to avoid getting a judgement against you. So your best bet is working out a settlement you both can live with. But they don't have to accept what you want to pay, it has to be mutually agreeable and you need to get it in writing.

Yes, they can take you to court, and get a judgement. As Scott mentioned in many states they can take certain amounts of your pay check and your bank account. Texas has some exemptions to this, not up on them completely.

But yes this is what happens when your car is repo'ed. You end up oweing more on the car after they take it normally than you did before.

They take the car, add repo charges, sell the car, add the cost of the sell ( advertising and so on) then add legal fee's. Then they take the amount of the car sell ( normally at auction for very little) and deduct that. Then they add interest for you not paying till you do pay.
This amount will only grow larger and larger.