Need Legal/Credit Advice!!! Please!

[celticqt206]

What is the name of your state? Florida

Hi, this is my first time on the board.

My father's business has not recovered since the hurricanes and everything that's happened (long story). His tools are all about to be auctioned off (probably about $20k worth) and it's his only asset (he doesn't own any property or anything else for that matter). The only thing he does have is three cars in his name--my little sister's '96 mustang, his old beat up work truck, and my '93 toyota paseo. The paseo is in my father and mother's name.

Today he received a letter in the mail that resulted from a court judgement. Since my dad's business has closed down, there were some customers whose work he could not finish, and that is why his tools are being auctioned off to pay some of them back. Well in this letter, they want a ton of information filled out including all of your assets of which my father only has the cars. They also want to know the names of all his children and their ages. What I'm really worried about is my own car (the paseo). I just graduated from college and I"m dependent on that car...without it, there's no way i could get to work. We were just about to start the process of having my car's title transferred into my name, but now the court is going to know about that. Can they take away my car?! I can't afford a new one and there is no public transportation around here. I'm scared to death. Also, why would they need to know my name and age if it's a case that has to do with my father? They aren't going to garnish my wages and put a lien on my credit are they? I'm so worried right now.

Any advice?

[celticqt206]

Also...My fiance feels really bad for me and is trying to offer up solutions. What if my fiance bought the car from my father? The court would still have to know about it because my father has to disclose everything that's happend in the last year (titles transferred, cars sold, etc.). Could my father or DF get in trouble for doing this? Is there anything we can do to save my car? According to kelly blue book, it's only worth about $500 I guess. Please help.

[Debt Guy]

Your father must answer the information subpoena. He must answer truthfully. He must answer all the questions -- even if he thinks they are not anyone's business (unless, of course, his attorney tells him differently).

Some assets are exempt. The equity in his home, for example. Autos have only limited exemptions. The fact that there are 3 vehicles in his name does not increase the amount this is exempt.

This is when having "your auto" in the name of your father is going to cause a problem. It is legally his vehicle and creditors have certain rights to the equity in the vehicle.

Yes, he can sell the car to your or your friend if the sale is for fair market value. But, he must tell the creditor that he sold it and all the details of the sale and be prepared to turn over the cash from the sale. The creditor can ask the court to reverse the sale if it is "fishy".

If you can prove that it is only worth $500, then go ahead and buy it and pay that price for it.

The best policy here is to just tell the truth and let everything sort itself out. Your father really needs an attorney.