It's not exactly clear from your question who came to your job, but first of all, there is no debtor's prison in Texas. Additionally, it is against both Texas and Federal Law to threaten prosecution in an attempt to collect a debt. If however, there is a court order out there that you are in violation of, then it is possible to be arrested for violation of it. This kind of order would be very unusual in the kind of case you describe. You need to get some professional help with this issue.
Hope this helps. If you think this post was helpful, please check the asnwer was a good answer tab below. Thanks. Mr. Geffen is licensed to practice law throughout the state of Texas with an office in Dallas. He is authorized to handle IRS matters throughout the United States and is licensed to practice in US Tax Court as well as The Court of Claims. This answer is provided as a public service and as a general response to a general question, it is not meant, and should not be relied upon as specific legal advice, nor does it create an attorney-client relationship.
Do you actually have title to the car or is there some sort of lease-purchase arrangement? In my state you can be criminally charged for failure to return leased property. If there's a possibility this is the situation, consult with a lawyer immediately. A felony conviction has far-reaching and likely irreversible consequences. Good Luck to you
While I rarely hear about anyone enforcing this law in a major metropolitan area, I guess because the police are already busy enough, it is in fact a crime in Texas to "hinder a secured creditor." Under the law, you are presumed to be hindering the creditor if you are behind on payments due to the creditor and, after the creditor demands that you turn the car over, you fail to surrender it. From what you have described, it sounds like you have committed the crime. It is not "grand theft auto," though. For property worth more than $1,500, it is a felony. For further information, the law is found in the Texas Penal Code, section 32.33.
I am licensed only in Texas. Offering information of a general nature in response to a question is not intended to be legal advice in your state.