I only made $900 so I didn't file taxes

[researchnerd]

A lawsuit can lead to a judgement - which can lead to wage garnishment and/or garnishment of your bank accounts. (Depending on your state, garnishment is not allowed in all.)

A creditor taking your car is unlikely.

Filing now could be a mistake. I assume you are unemployed and uninsured? If you were to become ill after filing you would accumulate medical bills. May be best, despite lawsuits pending, to wait til you're income-stable to file.

Listen to SMinGA. It's highly unlikely you'd lose a 10-yr-old car in a judgment for $1800. It's just not a good option for your creditor.

Are there other reasons you want to file BK?

[HMT]

I don't have wages or a bank account so the car really is my only asset right now. Will they hold on to a judgment till I'm working again?

[researchnerd]

My point is, it's not much of an asset. Even if they decide it's worth $1500, they need to take into account the costs of collecting your car, storing it, repairing it if needed, and selling it at auction -- where they might get half its retail value if they are lucky. Ultimately they would lose money on it, so it's unlikely they would bother - they are better off writing off your $1800 as bad debt and getting a tax break. If the car is your only asset, you're pretty much judgment proof at this point, so BK doesn't make a lot of sense.

For unsecured debt, they can potentially hold off on filing a judgment as long as your statute of limitations holds out, but after that they are out of luck.

I'd suggest going for a free consultation with a local BK attorney - they can tell you much better than we can what's likely to happen in your individual situation and jurisdiction.

[LadyInTheRed]

According to http://www.carreonandassociates.com/...#Massachusetts a judgment in MA is enforceable for 20 years.

If they get a judgment and get a job in the next 20 years, they can garnish your wages.

Don't file bankruptcy until you have income or assets to protect. Your creditors don't want your old car or any other stuff you may have. You may incur more debt before you are financially stable. If you file now, you could find yourself in worse shape later without the option to file BK.

[sablemerle]

You will need to file all unfiled taxes before you can file for bk. Go ahead and file, you'll probably get the earned income credit if your over 25.

Is this lawfirm directly representing Citi as the Original Creditor, or are they representing a junk debt buyer as assignee? (this makes a difference in how you handle a lawsuit).

If you are judgment proof, I'm not sure if I would file bk just to save your beater car. If they don't have a judgment yet, they might be willing to settle for a lumpsum payment well below the actual balance.

[HMT]

Yes I have everything set up and I will file. They are representing Citi.