Default Judgment and Car Repossession (paid off)

[sephiroth499]

I'd like to know if, say, you owe 5,000 on a cc and stop paying it, the likely hood of a creditor seizing your car. The car is valued between 8-10k (paid for). I'd also like to know if the debt were more, or less, would that change the motivation to repossess. Also can a charge off from one CC affect another open account? When my CC 'expires' do they run my credit again?

My reading from the NOLO press books indicated that unless it's real estate, or valuable paintings, property seizure is unlikely.

I'd also like to know if the bankruptcy exemptions are pretty much the same when dealing with a judgment. Also I'd like to know if the same 2 years domicile standard is applied with judgments or just bankruptcies.

I have no assets besides a small cash pension (can't take it for another 30 years), a car, and an SSDI check (direct deposited). Also would like to know if it's safer to switch over to the new SS debit card, to completely eliminate the threat of account freezing.

I'm anticipating some large medical-related bills in the future and I'm trying to prepare.

[GoingDown]

Is it possible for a judgment creditor to seize your car? Yes.

Is it likely to happen? No.

First they have to sue you. Not all creditors sue people. Out of my many defaulted credit card debts, only one of them sued me.

Next they have to win the lawsuit.

Once they get the judgment, they have to somehow figure out that you have a car. (The less you tell them, the better.)

Then they have to determine if the car is worth taking. Most of the time, the car is not worth taking.

Most of them even at this point are not aggressive enough to come after your car. Most of them would rather garnish wages or seize checking accounts. Very few of them are actually interested in coming after your car.

[sephiroth499]

The only reason I thought about the car was because, I assumed since it was titled it was public record. I know with houses you can look up public information, who owns it, purchase price, etc.

[DYLAN150]

Let's just say your car is worth 8K. Now they have to tow it, store it and pay auction fee's and sheriff fee's. They have to pay you your state exemption for the car. In my state it's like 3,250 bucks. Most car's don't sell for bluebook at auctions. I don't see where a an 8K dollar car would be worth taking. Like goingdown said, they want a garnishment or bank levy. Dosn't Maryland have a $6000 wildcard exemption?

[sephiroth499]

Yes Md does, but I'm looking to move to PA at the end of the year to roommate with a friend. With my health problems, I can't keep an entire household clean and organized by myself. I'm looking for some help and companionship by moving with a friend. My family has abandoned me and I'm not sick enough to live in a 'home' (and I'd rather die than live in a nursing home).

Basically I've exhausted all of the conventional medical treatments and what Medicare will pay, and I'm looking to go on a CC bonanza and try everything that isn't covered. If I'm able to rehabilitate myself in a sense, then it will be worth it and I can go back to work. Even if it doesn't work, I think I deserve the chance.

I'm either just going to default or float the debt for as long as I can then file chapter 7. I haven't decided yet and I'm in the research phase right now. I'm leaning towards BK, because I don' have to deal with summons or harassment.

[GoingDown]

If you do the CC bonanza, you'll probably need to wait a while before you can file Bankruptcy and get those debts you ran up discharged.

When I started out on this long and winding road back in 2005, I had gone a little bit hog wild with credit cards, and it's the main reason I waited to file BK-- I wanted to put some time in between my BK filing and the most recent credit card charges.

Then as time went on, I figured out that I was judgment proof, and I just never bothered filing BK. Only one of the credit cards ever sued me, and the rest are now all beyond the statute of limitations for winning a lawsuit against me.

Good luck with the alternative medicines.

[sephiroth499]

Out of all the things I've read the only CC transactions that are questioned are purchases over 600 within 90 days, and any transfers of property within the last 2 years (for BK).

I'm essentially judgment proof minus the car, and the fact that I still have 25,000 in the bank from my lump sum SS payment. According to what I've read and from other posters, since the two bank accounts haven't been completely 'clean' their entire life, I have to remove the money. See the above posts for more info.

I could just totally liquidate my accounts, and just put the money in a safe deposit box. The trouble is during BK they ask about safe deposit boxes. I could just choose not to file BK, and put the money somewhere.

The money is exempt, but by some technicality in the law, it isn't.

If I had any family or a spouse to fall back on, I would not take this road. I can not spend my life savings on a 'hope' that it might work and make me functional. With no support whatsoever, and the worst job market since the Great Depression, I can't take that chance.