Question About Judgement/Court

[dontwanna]

While it is not guaranteed, it is likely that there is a clause that links your defaulted debt with the credit union with any "assets" you have that are tied to loans through the CU (i.e. the car loan.) While it may be that you are well within your exemptions to protect your vehicle, you may have to "claim" your exemptions after the CU possibly repo's your car.

One of the fallacies that seems to come up over and over is that if you are within your state exemptions, you are fine. Well, you may be fine, but this is only if you play by your particular state rules. Someone can garninsh your wages, repo a vehicle, attempt a sheriiff's sale on property, and it can be up to you to provide evidence that such actions should not occur. Many times this is after the fact.

Do your homework. Does the judgment against you create liens against real property without further action from the plaintiff? Liens against personal property?

Does your credit union have the right to seize your vehicle because you defaulted on another loan with them? This would not be unusual for credit union agreements that I am familiar with.

Geesh. So I'm probably not out of the woods with this either? My head is spinning.

Thank you for telling me this. I appreciate the info even if it's not what I wanted to hear.

[dontwanna]

Update

I went to court this morning. Every other debtor (yes, there were others) for this credit union did not show up for their hearings. And in the end, we all got the same results. A judgement.

The judge was very nice, it was easy as pie as I could not argue with the debt. I explained my inability to pay, and the representative from the credit union said they were aware of my situation but wanted to proceed anyway. I expected that. The judge asked if I had anything else to say. I didn't. So it was granted. Done is literally less than two minutes.

I asked to stop and let me ask a question about the cross collateral issue. The rep from the CU looked stunned that I asked, then she hesitated, made a face, and then answered "yes", my car is cross collateralized with this loan that has a judgement.

I do not want to be humiliated even further by having someone show up in our neighborhood to repossess it. I am under the impression from my reading that they will, even though we are not behind on it because we have struggled to keep it up to date. We do have enough equity in the van to take care of the balance on it and most of this loan as well. So I feel sure they will seize it. How do you surrender a vehicle, and would that be advisable at this point?

[Exployer1234]

In your judgement papers does it state how they are going to collect the money?

Secondly if they are planning on taking a vehicle I would just call the lawyers who sued you and ask them if they are planning on taking the car? If that is their plan ask them who do you contact to come and get the car.

You can also play the waiting game and let the repo guy try and contact you. Then you can make arrangements where to met.

[dontwanna]

In your judgement papers does it state how they are going to collect the money?

Secondly if they are planning on taking a vehicle I would just call the lawyers who sued you and ask them if they are planning on taking the car? If that is their plan ask them who do you contact to come and get the car.

You can also play the waiting game and let the repo guy try and contact you. Then you can make arrangements where to met.

Judgement papers? I didn't get anything. The judge just said judgement was awarded to the credit union. Then both the rep and I left. Sorry for my ignorance. What do I do now?

[Exployer1234]

Do you have the original papers that were served stating what the balance was you have to pay? On the paper it should state the full amount of what you are being sued for.

Now keep in mind they can charge you interest on this amount as well. It can not be more than 10%.

Next do you have the names of the lawyers who represented the credit union. That is who I would contact. if you do not I would go to your county's court dockets to find out who the representing attorney is and contact them. They should be able to work out a payment plan before they have to start garnishing your wages. If you do not work out a payment plan then yes they can take your vehicle because it is cross collateral.

If you can not find this information out then I would contact the creditor and ask what is your next step. You need to get the following information:

How much the lawsuit was for. This needs to include their attorney fees, court fees, and any additional fees that are being added in. Also ask how much interest is being charged onto this lawsuit.

Next find out if there is a payment plan that you can workout with them.

They should refer you to their attorney that sued you anyway, but that is where I would start. This way you may not have to lose your vehicle.

[dontwanna]

Do you have the original papers that were served stating what the balance was you have to pay? On the paper it should state the full amount of what you are being sued for.

Now keep in mind they can charge you interest on this amount as well. It can not be more than 10%.

Next do you have the names of the lawyers who represented the credit union. That is who I would contact. if you do not I would go to your county's court dockets to find out who the representing attorney is and contact them. They should be able to work out a payment plan before they have to start garnishing your wages. If you do not work out a payment plan then yes they can take your vehicle because it is cross collateral.

If you can not find this information out then I would contact the creditor and ask what is your next step. You need to get the following information:

How much the lawsuit was for. This needs to include their attorney fees, court fees, and any additional fees that are being added in. Also ask how much interest is being charged onto this lawsuit.

Next find out if there is a payment plan that you can workout with them.

They should refer you to their attorney that sued you anyway, but that is where I would start. This way you may not have to lose your vehicle.

Thank you. In NC, they can not garnish wages. I already took care of the checking account and I don't have one anymore. I am unemployed.

The credit union did not send a lawyer, just an employee of the local branch. In the judgement it was awarded for the exact amount on the paper I was served with, plus $85.00 court cost. I finally called the CU and talked with the employee who was in court this morning. She said there were no plans to repossess the van as it is up to date. However, before it would be titled to us, the judgement would have to be paid as well as the van note.

Due to our situation, we will most likely surrender it anyway. But that's another story.

Thanks so much, Exployer, and everyone else who has answered all my questions this week. This is a very helpful forum and I'll be hanging out as we paddle our way through this mess.

[treehugger1]

I suspected the cross-collateral would come into play. As long as you are current with your payments on the vehicle you might be fine. Consider this. Making payments on your vehicle is revenue for the CU in terms of interest. Once the vehicle is paid off then you might want to be concerned. If you file for BK prior to that time, then you should be fine, unless the vehicle value exceeds your state vehicle exemptions.