What do I do if I got a summons on a loan for a car that was repossessed?
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What do I do if I got a summons on a loan for a car that was repossessed?
What can happen to me when a finance company sues me for the balance of a loan on a repossessed car? I am unemployed, have no property, temporarily live rent-free with my ex- husband. I have absolutely nothing to my name. What do I do?
Asked on June 11, 2012 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If there is a judgment against you, it can be enforced for many years to come; thus, if your economic situation improves, the finance company--assuming it wins its lawsuit--could look to garnish your wages, or execute on your property, or levy on your bank account, in the future.
That said, if you legitimately owe the balance of the loan, there is little you can do about the lawsuit; and given that you appear to be judgment proof at this time, there is little that could be done to you until and unless your situation changes.
It would be worthwhile petitioning the court for leave (permission) to appear as an indigent, which will save you filing fees, and if you can do so, then to Answer the Complaint against you. While that will not prevent you from ultimately losing if you owe the money, as long as you have not defaulted, there is the chance the other side will default or elect to dismiss its lawsuit; and also, while the judge cannot make the other side accept less than they are legally entitled to, he can sometimes encourage them to be reasonable in light of your situation, so something may be worked out which is favorable for you.
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