If a credit purchaser is suing me for debtthey bought, can they take my car?

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If a credit purchaser is suing me for debtthey bought, can they take my car?

I am unemployed. Have $600 a week unemployment and household consist 4 people including me. Some company bought my credit card debt of $3,000 and now they are suing me for this. Can a judge rule against me considering my condition? Can they take my car for the debt?

Asked on January 10, 2012 under Bankruptcy Law, New Jersey

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The court can rule against you despite your financial situation.  If the creditor obtains a judgement against you, it would be advisable to file bankruptcy to stop enforcement of the judgment.  Until there is a judgment against you, it would be premature to file bankruptcy.  Chapter 7 bankruptcy is straight liquidation which eliminates your debts.  You will need to list all creditors in your bankruptcy.  You don't need to list any where you have a zero balance.

When you file bankruptcy, there are exemptions for a car and other items.  You use the exemption for the car to protect it.  You will need to choose whether to use the federal exemptions or the state exemptions for your particular state.  Select the set of exemptions which has the larger amount.  For example, if the larger amount of the automobile exemption is in the federal exemption, select federal instead of state.  You cannot use both state and federal exemptions.  All your items of exempt property will either be under the federal exemptions or all items will have to be under the state exemptions.  You cannot have some that are federal and some that are state.


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