Served papers for a debt I cant pay...what do i do next

[fatjay]

Today is sunday and I was served with papers for a debt on a truck that was repoed....I cant pay the debt and they want that plus court fees???

What do I do now???

Any suggestions would be helpful

Thank you

[Nicollette]

Today is sunday and I was served with papers for a debt on a truck that was repoed....I cant pay the debt and they want that plus court fees???

What do I do now???

Any suggestions would be helpful

Thank you

You said it was surrendered? Do you mean surrendered during your bankruptcy, or repoed?

[tobee43]

are you filing bankruptcy...or have you...or are you planning to in the near future.

it really depends on your situation as to what you can or should do.

[fatjay]

I have not filed and didnt plan on...things were just starting to look good...we are getting our CC paid down and we are really starting to do well...it has been a real struggle the last few years but things were turning the corner...I guess I new this loan would come back and bite me some day, was just not expecting it to be today

with court fees est 23k
may not seem like much to most but that is an amazing amount of money to me

[fatjay]

You said it was surrendered? Do you mean surrendered during your bankruptcy, or repoed?

I gave the truck back to the bank when my hours were cut and I could no longer afford the payment

[free2breathe]

I guess a lot of questions come to mind. What was the value of the truck at the time you turned it over? What was the amount owed? Are they suing for the entire loan amount plus fees? If you're struggling to get cc payments paid and facing a judgment based on the amount of the suit, and it all seems a bit too much, it might be a good time to schedule a few free consultations with bankruptcy attorneys in your area. Explore your options. If they get a judgment, they can only garnish according to your state laws, so you have to figure out what that means for you financially. Weigh it in with your current payments, total debt. etc.

Most importantly, please understand that if you do come to the conclusion that bankruptcy is the way to go, it's nothing to be ashamed of, nor does it make you a failure.

In our case, I looked at the time it would take to repair our lousy credit as is and the time to repair it post bankruptcy. It's not an easy decision, but if you go into it all well informed of your options, it's much easier to deal with.

Best of luck, and keep us posted.

[fatjay]

They are going for the amount owed 17,547 court fees 5,849 plus intrest on the debt 7.9%.....Suck part is that I offered to make payment (small ones) till I got on my feet and could do more....Nope the best they would do is split it up in to a few payment...Ouch, no go

[free2breathe]

Have they given you credit for the truck? Have they sold it? Is that $17547 the difference between the value and what was actually owed? I don't know all the ins and outs of car loans, but it seems like they should not be able to sue for the entire loan amount if they have the vehicle in their possession.

But, I guess what it really boils down to is that they aren't willing to deal in terms you can agree to, and therefore they will pursue a lawsuit and you will be at their mercy. That's why I say it's a good idea to get a few free consults. It will give you a better idea of what your options are. Talking to an attorney, thankfully, doesn't make you obligated to file

[fatjay]

The suit is from a collection company that bought the debt..after the bank sold the truck the balanced owed was the 17k...I have some numbers already to call monday for lawyers...they are expensive too and then I will be in debt to them...but maybe their payment terms will be better..LOL

wish I could take out a home loan of creit and just pay them to go away...but thats not an option....upside down on the house along with everyone else...good times

[free2breathe]

Welcome to the "Good Times Club" lol. We're all in the same boat, or at least floating in the same murky waters.

See a few attorneys, compare their fees, compare the feeling you get from each of them, find one you're comfortable with if you decide to file. We filed pro se, but we have no assets and all unsecured debt, so it was fairly easy (though time consuming and stressful). But, from reading the threads on this forum, the key is not settling for the first attorney you talk to. Some attorneys will take a small retainer and start getting your paperwork started. You can make payments, and once their fee is paid in full, they'll file for you. So, yes, while you will be in debt to them for a time, it will be nothing compared to upside down mortgages, civil suits, high interest rates, etc.

[backtoschool]

It sounds like the 17k is the deficiency between what was owed on the truck plus interest and what they sold the truck for. They can get a judgment for that balance and levy your bank accounts and garnish your wages, so bk might be a better way to go at this point. If you do decide to file bk, the 17k and the collection costs, would be dischargeable debt.

If the papers you were served were a lawsuit, then answer the summons within the 21 days or so that you have to answer it. That will buy you some time to figure out your next steps.

[fatjay]

It sounds like the 17k is the deficiency between what was owed on the truck plus interest and what they sold the truck for. They can get a judgment for that balance and levy your bank accounts and garnish your wages, so bk might be a better way to go at this point. If you do decide to file bk, the 17k and the collection costs, would be dischargeable debt.

If the papers you were served were a lawsuit, then answer the summons within the 21 days or so that you have to answer it. That will buy you some time to figure out your next steps.

I have already typed a response to the summons...I have to file it monday (tomorrow) figure that way at least it looks like im trying...this is what i wrote:


RESPONSE TO SUMMONS RECEIVED ON 10/24/2010

I have had contact with Surety Acceptance Corp. in the past and on the many occasions that I spoke to them I tried to make it clear that although I am listed as a full time employee I am not working full time hours currently.

I also tried to explain to SAC that I was willing to pay the debt but I was unable to at the present time. In addition, I tried to set up small monthly payments for the time being till I was back on my feet and that offer was declined, SAC wanted to split the amount owed into a few payments larger then I could afford.


???????????????????

[fatjay]

update:

I have an apt Thursday with a lawyer..Let you all know what happens...

Thank you
J-

[fatjay]

Ok so I had my meeting and it seems that chapter 7 is the way to go...this will protect me home..The lawyer I met with, well I dont know how to judge, but he didnt ask from me to whip out the money and lets get going...he offered advice and was no pressure...it was a free 30min visit that when way over 30min and he didnt try and push me out the door..small firm....is there a way I can check him out?

[tobee43]

Ok so I had my meeting and it seems that chapter 7 is the way to go...this will protect me home..The lawyer I met with, well I dont know how to judge, but he didnt ask from me to whip out the money and lets get going...he offered advice and was no pressure...it was a free 30min visit that when way over 30min and he didnt try and push me out the door..small firm....is there a way I can check him out?

you can google his/her name and see if there is anything posted in the form of a "review". i know what i completed my case, i left a review on my atty so it would be helpful to others looking up info on the firm.

however, remember...we hear stories all the time about someone saying how GREAT that restaurant is and we go in and think it's horrible....that's kinda my analogy with attys...i'm not really caring what someone else experienced , if he or she makes ME feel comfortable...then that's where i'm going.

it's up to you...we interviewed 6 and went with one that sounds similar in disposition as yours...never hurried..or rushed and listened to everything we were concerned about and had solutions...for us that was far better than a few of the loud mouth promise you everything will be fine attys. we had some complex issues and needed to be certain we had someone that could handled it...turns out the firm did a great job for us...