Being sued re:Delinquent Credit Account

[ERIN79]

Hello everyone and thanks for reading my post. I have already posted this in another forum but wanted all the advice I could get.

In Nov 2000 my husband was laid off from his job. Due to this I couldn't pay on any of my debts besides my car (500.00 due to high interest rate, I cannot refinance) and rent (600.00). Today I got a call from a certain creditor that I owe 1300.00. He stated that they are filling a civil suit against me on Tues. He got very rude and called me young and irresponsible. Then he brought up the fact that I have been paying on my car and none of my other bills. He also stated that he will make sure that the judge knows that I am paying on my car and nothing else. My question is:

Can the judge order me to sell the car?

I am worried sick about this! Please help!

Erin

 

[HomeGuru]

Here is what you did wrong. You bought a high priced late model that you could not really afford. Because your credit was not good you had to settle for a high interest rate loan because you just had to have that car. The minute you drove it home and off the lot, the value went down by around $2000.
If you are paying rent of $600, your car payment is almost the same as your rent. What were you thinking?
Now sell the car and buy an older used model so your payments are $100-200/month. Then you could pay say $200 per month to the creditor.

 

[ERIN79]

Not possible

First I would like to say that I live in Lafayette, Indiana. 600.00 a month is a GREAT price to pay for a 2 bedroom.

Secondly, I cannot sell the car. When I went to purchase it they in turn paid a 2,000 dollar loan that I had for my previous car. This car was NOT reliable and I needed better transportation.

Third, My credit was not poor. I had alot of good credit which in most instances is not good. I was considered high risk because I had to get the loan myself not including my husband as a co-signer.

Thanks for your feedback, it was greatly appreciated!

 

[JETX]

Generally, the court cannot order you to sell something to pay a debt. They can only listen to the facts of the case, then render a judgment for the party that is best able to prove their case.

Based on your post, it sounds like there is little doubt that your creditor will get a judgment against you. If he/she does, the judgment will include the original claimed debt, PLUS attorney fees, PLUS court costs, PLUS interest. Also, here are some of the things that COULD happen (depends on allowance by state):
1) Garnishment of wages.
2) Seizure of bank account.
3) Seizure of assets (car, house, jewelry, boat, etc.)

So, as you can see, it would be to your benefit to try to resolve this problem before a judgment is rendered against you.