Disability Income W/Car

What is the name of your state? Georgia

I am disabled. Before I became disabled I had several credit cards. I still owe money on these cards. I haven't used these cards since I became disabled. Now I am being sued by one of the credit card companies in Civil court. The only thing I own of any value is my car... it is a 1995 Grand Am. I was in the process of selling this car to my sister but I don't want her make payments to me if it can be taken away. Can these people take my car from me and can they take any of my disability money that I receive every month???

[Ladynred]

Quite frankly, the car isn't worth all that much when you use the black book price less 30%. I drive a 94 Grand Prix, so I have a pretty good idea what yours would be worth. The vehicle exemption in GA is only $1000, but its still unlikely they'll bother with it. I wouldn't go forward with the sale, however. It could be looked upon as a fraudlent conveyance, an attempt to 'hide' an asset (even though its not worth much) and the court can reverse the sale.

Disability income is exempt from siezure in either judgment or bankruptcy. What you should do, right now, is take a statement (get it notarized) to the bank that says all of the funds in your account are from an exempt source (disability income). This should stop any attempted garnishments should it go that far. Since the money is direct deposit, the bank can easily see the source and verify your statement.

Who's the creditor suing you and for how much ?

The Tag office says my car is worth ... right @ $1900.00 I have no Idea what the amount is on this lawsuit, I haven't picked up the actual papers from the court house... I am very worried about not only this company but others that will follow ... when I became disabled I owed somewhere in the neighborhood of $35000.oo So what is to keep them from taking the car to sell @ auction??? I owe some companies small amounts and others very large amounts... If this company is only owed a couple of thousand then my car might look pretty good .. to sell for the amount owed... I feel like I have been through enough with the disability thing I really don't need legal problems too... If You Know of anything that would help in this situation please let me know..

[Ladynred]

Well, don't take the tag office's valuation of $1900.
The value you should use is the black book price minus 30%. You can find Black book valuation here:

[url]http://www.carquotes.com/blackbook.asp[/url]

If the mileage is high, if there's any mechanical problems or if its in less-than-perfect condition, you can probably knock a bit more off the quote.

It still unlikely that they'd take your vehicle, not impossible, but improbable.

As for the other companies, it depends on how much you owe and who the creditors are. Some, like Discover, will sue over almost any amount, others won't sue unless you owe a LOT of money.

Your income is exempt.. they can't garnish it or seize your bank account. If you have nothing in assets that is non-exempt, they're going to have a VERY hard time collecting.

I just wanted to say thank you to each person that answered my question ...The Info was most helpful