Buying A Car With A Judgement On File

[ValleYum]

It would be worth paying a consult fee to triple check with an attorney familiar with judgments to make 110% sure. You'd hate to make a $5,500 mistake.

[GoingDown]

The $5,500 exemption for a vehicle is rock solid. The wildcard exemption, who knows? My guess is they will never come after his car no matter how much it is worth, because most debt collectors don't bother with such things.

But the way the $5,500 exemption works is if they chose to go after his car, out of the proceeds of the auction, they would have to pay him the $5,500 exemption amount, then pay for the sheriff's constable, tow truck company, storage, insurance, and the auction costs, and then if there was any profit left, they would get that money. They don't want to bother with something like that.

They want to make money, not lose money. Debt collectors have bills to pay themselves to keep their lights on.

[ValleYum]

The $5,500 exemption for a vehicle is rock solid. The wildcard exemption, who knows?

My caution about the $5,500 was regarding the Wild Card exemption and it being 'stackable' in a judgment situation.

I mean my next comment in the most respectful way, GD: In my time here both on the BK Forum and this earth, I have truly learned never to say never. That being said, at some point with our nation's economy the way it is, some collection companies are going to start taking vehicles to satisfy judgments. I sure would rather get $1k from an auto auction (after all those expenses) than nothing from a BK petitioner. Used cars are becoming an even hotter commodity as people's credit scores continue to decline, too.

Of course, this is my opinion and like noses we all have one and they all are different!

[CCM620]

I've researched it the best I could and the wildcard exemption is stackable and can be used on any catagory. I understand these laws are different state to state, but for SC the law looks pretty clear cut. There is always a chance the creditor/sheriff could go after the car, but you have to have a car and can't let a remote chance of something happening slow you down.

[treehugger1]

It is nice that the wild card exemption can be used to increase another exemption. In Oregon, the wild card exemption cannot be used to increase the exempted value of another exemption.

As always, each state has its own laws. I'm begninning to think that SC is quite debtor friendly!

[CCM620]

Treehugger,
Yes, my hours of research have led me to believe SC is one of the most debtor friendly if not the most debtor friendly state in the US. First, the big one, SC does not allow wage garnishment from creditors under any circumstance (one of 4 states). Next, judgements here are only good for 10 years and CANNOT be renewed. And lastly, generous exemptions for bankrupcty that are also law for any creditor lawsuits- the new law in effect is adjustible upward every two years to the cost of living increase and rate of inflation- $50,000 (now $55) for homestead- $5,600 home furnishings, $5,600 automobile, $5,600 cash, $5,600 wildcard (can be used for anything) and a few others.

[rogue22]

Just have your mom as a lien holder against the car.. I did this when I was going to file BK, my atty recommend this to me actually. Technically, your mom is giving you 15k for the car so she has every right to be a lien on it. Then make monthly $50 payments to her using a check that she then deposits. She can then just turn around and give you $50 cash back. The debt collector will see the lien and either just forget about taking the car or may (unlikely) contact the lien holder to find how much the lien is for (15k) and then forget it. Just make sure you create a document explaining the lien is for a 15k loan and your making $50 monthly payments to your mom and sign/date it. Also, make sure theres proof of the 15k going into your pocession and then you paying the dealer with it.

This is the same as financing a car through a loan company, instead its your mom.