They took my car

[LadyInTheRed]

Some shady debt collectors will do whatever they want, legal or not, because they know they can get away with it. They figure the consumer won't know any better, and won't fight it.

We have no reason to believe anything illegal has happened. The OP has several default judgements against her. A creditor has apparently decided to get aggressive about trying to collect whatever can be collected.

[LadyInTheRed]

Here's a link to Michigan's exemption law for judgements: http://www.legislature.mi.gov/(S(yi5...e=mcl-600-6023

The exemptions are different than bankruptcy exemptions which are at http://www.legislature.mi.gov/(S(yi5...e=mcl-600-5451

I suggest you contact a bankruptcy attorney to find out if filing BK now can help save the car at this point. If BK can help, you have a short window.

[shado1021]

I just had an interesting phone conversation with an attorney. As soon as I told him what happened, he asked me if it was (name). I said yes, how did you know? Seems this particular sheriff has quite the reputation for doing things he's not supposed to do to make his money and he gets away with it. Even the trustees don't do anything about him. He told me things this sheriff has done that made the hair stand up on the back of my neck. So the chances of getting my car back are next to none. He said I could file a Claim of Exemption but I would have to prove to the judge that my car was exempt. The sheriff would just make my car seem like it was worth more than it really is and the judge would decide in his favor. The attorney said what the sheriff will do is tell me if I give him something like $1000, he will give my car back. But, the sheriff will just seize my car again maybe next month. It won't end. Otherwise, he's going to sell my car at auction as fast as he can for say $1000 - $1500, take his cut and give the rest to the creditor.

My only option is to file bankruptcy since I also learned that I was so very wrong about the SOL and it doesn't apply to me. This attorney I talked to sounds real nice. Charges $999. I have to pay $150 up front and he takes monthly payments. After I have paid $600, he files. Doesn't wait until I've paid the whole amount. My doctor is not going to be happy that I'm living on ramen noodles.

Next thing to do is call the sheriff.

[LadyInTheRed]

My only option is to file bankruptcy since I also learned that I was so very wrong about the SOL and it doesn't apply to me.

Sounds like you were thinking of the statute of limitations that sets the last date on which a creditor can file a lawsuit. Once they have a judgment, there is a statute setting the expiration of the judgement. According to a quick google search, that is 10 years in MI and a judgment can be renewed.

[treehugger1]

As lady in red stated, there might be a form used by your local court to file for your exemption. We have that in Oregon, and the form has to be served with the seizure notice.

I would be curious to know what the plaintiff generally receives after the sheriff removes his "costs."

[bcohen]

It sounds like the only way to get your car back is to file an emergency bankruptcy petition. The automatic stay will take effect immediately, preventing the sheriff from selling the car, and you will have 14 days to provide a complete petition, schedules, and take the pre-filing certification class, which you can do online. I suggest you file ASAP, because it would be silly to give up your car, only to still owe the vast majority of the judgment, and be subjected to further property seizure in the future!

[shado1021]

Thank you all for responding.

Lady - yes, I understand he doesn't work for them, he works for the Michigan courts. Midland Funding LLC Assignee of Target National Bank is on the order. And I have to say that I'm a little surprised that it is Target and not Discover. I owe Discover much more money and I have read how aggressive they are. Discover does have a lien on my house and I had to go in for their debtor's exam 2 or 3 years ago but I haven't heard anything from them since. They must have realized I didn't have anything worth coming after.

nioka - thank you for the link. I have been googling like crazy but missed that one. I notice that site doesn't mention a vehicle exemption, but Michigan does have one for $3250.

[shado1021]

I talked to the sheriff late yesterday. He wants me to pay his fees (that includes storage fees, notice of sale fee, etc) and agree to a payment plan with Target, then he will give my car back. He's also willing to accept a payment plan for his fees of $100/month. If I mess that up, he will come back and take my car (that's basically what the attorney told me he would say). He didn't have the appraisal yet for my car. I have until Feb. 15, then he auctions my car but he would hold it longer if I needed more time. We were both cordial until I mentioned I had learned about something called a Claim of Exemption. He told me there are no exemptions, if it's property he can take it. I said that everybody has some protection from creditors to some extent. He said "You have no protection from creditors. Absolutely none". He asked if I was going to file bankruptcy and I didn't answer that, just said something else. I didn't tell him I have already spoken to an attorney and yes, I will be filing bk. I borrowed some money and I have the $150 to retain the attorney. I will be talking to him today.

So here are my options:

1. File a claim of exemption and try to fight it in court (the attorney doesn't have much hope that I would win).

2. Agree with what he wants me to do and live with it until I file. But I don't know how much Target would want every month so I could end up with very little for groceries or any other expenses that come up during the month. At least I would have my car. But then when I do file, wouldn't the trustee get the money back from Target? Since I would be on a payment plan to the sheriff wouldn't he be considered a creditor too? Would the trustee get the money back from him also?

3. Let the car go and just pay the attorney every month until I can file.

I want to explain to everybody that I am not the type that bought a bunch of new furniture, appliances and stuff and just decided not to pay for it. There was a time when I worked, paid my bills and had good credit. Then my husband left in 2002, my health started going downhill and I was working less and less. At the same time I was helping my daughter out a lot and seeing my grandchildren had what they needed. Started living off credit cards. Before I got SS, I was trying to live on $300-$350 a month. That's all I could work. I got food assistance for about a year but they cut me off as soon as the SS started. Honestly, if you walked into my house you would wonder WTH did you spend all that money on??? It wasn't on myself. I never wanted to end up like this. Never. But it's nobody's fault but my own.

[keepmine]

As to question #2:

You and your attorney should shcedule anyone who could conceivably have a claim.
It's up to the trustee to decide if it's a preference issue and the recovery is worthwhile or not. But, that's not your problem. That's between the creditor and the trustee. Don't worry about that issue.

Were I you, I believev I'd contact my state Attorney General's office-many have a dept. of consumer affairs- and relate what the sheriif told you and ask if they could investigate and see if that is correct.

[LadyInTheRed]

I notice that site doesn't mention a vehicle exemption, but Michigan does have one for $3250.

See the links I posted above. I think Michigan has different exemptions for post-judgment collections and bankruptcy. It looks like the car exemption only applies when you file BK. The Sherriff should honor a $1,000 personal property exemption. Ask your attorney to confirm this.

[bcohen]

Forget saving up to pay an attorney. Get the NOLO book (available at Barnes & Noble, and possibly other local bookstores) and file Chapter 7 yourself. Start out with an emergency petition and motion for fee waiver if you are truly indigent. It sounds like you have nothing else to do with your time, and should be able to download, fill out, and print the completed petition, schedules, and obtain the certificate of pre-filing counseling within 14 days. Making a deal with the Sheriff is stupid, unless you are planning to drive the car to another location and hide it, and are willing to run the risk of being jailed for contempt.

[bluediamond2077]

Midland Funding is nasty they had three of my credit card accounts and called me over and over telling me they would get me put in jail. I told them off and hung up.

I filed CH 7 a few days ago.

I was also thinking of waiting and I did for four years. I got taken to court and they could renew in 5 years. I don't want to put my life on hold for 10 years and place games with them. They found out were I live just this year and local lawyers are showing on my credit report.

NOLO book , youtube videos and reading this site helped me file. I even put in for the filing fee to be waved because of my low income so if that is approved I wont pay a dime for my ch 7.

[GoingDown]

I talked to the sheriff late yesterday. He wants me to pay his fees (that includes storage fees, notice of sale fee, etc) and agree to a payment plan with Target, then he will give my car back. He's also willing to accept a payment plan for his fees of $100/month. If I mess that up, he will come back and take my car (that's basically what the attorney told me he would say). He didn't have the appraisal yet for my car. I have until Feb. 15, then he auctions my car but he would hold it longer if I needed more time. We were both cordial until I mentioned I had learned about something called a Claim of Exemption. He told me there are no exemptions, if it's property he can take it. I said that everybody has some protection from creditors to some extent. He said "You have no protection from creditors. Absolutely none". He asked if I was going to file bankruptcy and I didn't answer that, just said something else. I didn't tell him I have already spoken to an attorney and yes, I will be filing bk. I borrowed some money and I have the $150 to retain the attorney. I will be talking to him today.

Just reading that quote from the sheriff makes me think about all the bluffs I have heard from debt collectors over the years. My guess is that if this person had filed a claim of exemption, he or she would have been given the exemption amount from the proceeds of the auction. Old cars like this one don't sell for very much at auction. The sheriff knew this and was afraid that he had gone to all this trouble just to turn around and cough that money back up to the debtor after the auction.

See the links I posted above. I think Michigan has different exemptions for post-judgment collections and bankruptcy. It looks like the car exemption only applies when you file BK. The Sherriff should honor a $1,000 personal property exemption. Ask your attorney to confirm this.

Wow, so low! In Arizona there is a specific exemption of $5000 for one vehicle, and it doubles to $10,000 if the person is disabled. This is probably why this sort of collection activity so very rarely ever happens in Arizona.

It sounds like this person owns real estate and that there is already a lien from Discover on the real estate. If bankruptcy ended up not being the best alternative in this situation, then one thing I would do in the future is try to find a car that is worth less than the exemption amount, or very close to it. And next time, fight it. File a claim of exemption next time and fight that crooked sheriff all the way. And, right now, file a complaint against that crooked sheriff for what he has already done.

[AllMyDefault]

Sue him.

Have you contacted the local media to see if they'll take the story? After all he's an elected official who is abusing power. Some journalists like that kind of story.

Oh and btw, you can file BK and petition the court to waive the filing fee and go pro se. Because of that it takes almost no money to file. The courts belong to the people. Lawyers just want us to think they belong to them.

[GoingDown]

I would have loved to hear the outcome to this story.

What ended up happening?