If a credit purchaser is suing me for debtthey bought, can they take my car?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a credit purchaser is suing me for debtthey bought, can they take my car?
I am unemployed. Have $600 a week unemployment and household consist 4 people including me. Some company bought my credit card debt of $3,000 and now they are suing me for this. Can a judge rule against me considering my condition? Can they take my car for the debt?
Asked on January 10, 2012 under Bankruptcy Law, New Jersey
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The court can rule against you despite your financial situation. If the creditor obtains a judgement against you, it would be advisable to file bankruptcy to stop enforcement of the judgment. Until there is a judgment against you, it would be premature to file bankruptcy. Chapter 7 bankruptcy is straight liquidation which eliminates your debts. You will need to list all creditors in your bankruptcy. You don't need to list any where you have a zero balance.
When you file bankruptcy, there are exemptions for a car and other items. You use the exemption for the car to protect it. You will need to choose whether to use the federal exemptions or the state exemptions for your particular state. Select the set of exemptions which has the larger amount. For example, if the larger amount of the automobile exemption is in the federal exemption, select federal instead of state. You cannot use both state and federal exemptions. All your items of exempt property will either be under the federal exemptions or all items will have to be under the state exemptions. You cannot have some that are federal and some that are state.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.