being sued for credit debt

[blove29]

What is the name of your state (only U.S. law)? Texas

I was served last week for bad credit card debt and have to file a 'answer' to avoid a default judgement.

I really do not have any assets, I rent a house and have a nice new $40,000 dollar car that is almost paid off and is the only asset I really have. In a worst case scenario are they entitled to go after my car? I make the payments on it and is the only thing I have that is worth something. My bank account as dwinded due to being out of work for awhile, so there is not much to take there. Was curious if they can go after my car?

 

[Antigone*]

What is the name of your state (only U.S. law)? Texas

I was served last week for bad credit card debt and have to file a 'answer' to avoid a default judgement.

I really do not have any assets, I rent a house and have a nice new $40,000 dollar car that is almost paid off and is the only asset I really have. In a worst case scenario are they entitled to go after my car? I make the payments on it and is the only thing I have that is worth something. My bank account as dwinded due to being out of work for awhile, so there is not much to take there. Was curious if they can go after my car?

I have a solution for your problem. Why don't you sell that almost-paid-off 40K car, buy a clunker and pay your debts?

 

[swrdmbo]

The answer to your question is yes they can. Once they get their default judgment the can take your car, auction it off, pay off the balance and then pay themselves. If there is any money left (after the judgment and legal fees) you will get the balance.

So you might want to do what wireless suggests. Plus, I know you didn't ask,so I guess it isn't really a concern, but, it would be the right thing to do...

 

[blove29]

I am getting conflicting answers on the car situation. Some say they can take it, and some say that they cannot take your only means of transportation to get to and from work. Are you sure there isnt a law stating that they cannot go after your car?

 

[Antigone*]

I am getting conflicting answers on the car situation. Some say they can take it, and some say that they cannot take your only means of transportation to get to and from work. Are you sure there isnt a law stating that they cannot go after your car?

You said you didn't have a job to drive to??? Your 40K almost-paid-off car is not the only means of transportation available to you. There is also the bus. Sell your car, pay your bills, and get a job.

 

[blove29]

Your right I am currently not working but that will only be for another week or so. And they do not have buses where i live, but that would never be an option anyways.

Doesnt anybody know the for sure answer on whether there is some law stating that they cannot take your only means of transportation to get to and from work?

 

[TigerD]

Your right I am currently not working but that will only be for another week or so. And they do not have buses where i live, but that would never be an option anyways.

Doesnt anybody know the for sure answer on whether there is some law stating that they cannot take your only means of transportation to get to and from work?

Your question has been answered correctly.

The answer to your question is yes they can.

Type what you want to hear and someone will be along to parrot it back at you.

DC

 

[Texas Pooh]

Sorry, guys. Section 42.002 of the Texas Property Code exempts a total of $30,000 for a single adult, which can include one automobile per licensed driver in the household, provided that the automobile (and all other exempt assets) do not exceed $30,000 of fair market value.

Other exempt property includes:

(1) home furnishings, including family heirlooms;
(2) provisions for consumption;
(3) farming or ranching vehicles and implements;
(4) tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession;
(5) wearing apparel;
(6) jewelry not to exceed 25 percent of the aggregate limitations prescribed by Section 42.001(a);
(7) two firearms;
(8) athletic and sporting equipment, including bicycles;
(9) a two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person;
(10) the following animals and forage on hand for their consumption:
(A) two horses, mules, or donkeys and a saddle, blanket, and bridle for each;
(B) 12 head of cattle;
(C) 60 head of other types of livestock; and
(D) 120 fowl; and
(11) household pets.

The issue is going to be if the OP's car has a fmv that exceeds $30k, and if he has any other assets that put him over the limit.

 

[Antigone*]

Texas Pooh, I thought you might come along and burst our bubble.

Good to know the OP can keep his donkey too!!!

 

[Texas Pooh]

I hated to do it, too, under the circumstances - obviously, OP needs to sell his fancy car and take care of business.

However, we love our guns, pickup trucks, horses and homesteads in Texas, and pretty much protect them - its a holdover from that whole Alamo thing.

 

[JoycePorter]

well I guess he have no choice but to sell his fancy car and pay his balance. Thats the only thing I can think of.

 

[anteater]

I hated to do it, too, under the circumstances - obviously, OP needs to sell his fancy car and take care of business.

However, we love our guns, pickup trucks, horses and homesteads in Texas, and pretty much protect them - its a holdover from that whole Alamo thing.

You mean that Davey Crockett road into San Antonio in an F-150?

Dang, it wasn't that way in the movie!

 

[blove29]

@texaspooh

Thanks man you just made my day!! I know, I know i need to pay off the debt....But you cant mess with a mans car, that would just be screwed up!!

 

[Texas Pooh]

A real man doesn't need a $40k car to be a man.

A real man sells the car, pays the debt, and drives a car/truck he can afford.

In all likelyhood, the creditor is going to challenge your claim to an exemption ... and argue your car exceeds the exemption.

 

[Country Living]

However, we love our guns, pickup trucks, horses and homesteads in Texas.....

And in that order.....