Author Topic: Can Collectors confiscate a vehicle for a judgement on a credit card?  (Read 1493 times)

0 Members and 1 Guest are viewing this topic.

lberman

  • Valued Member
  • Posts: 1
I went to conciliation court to dispute a debt on a Cabela's credit card. The creditor did not answer my letter of validation request and the court date was past the SOL. However, the judge gave them a judgement because he stated that the case was filed before the SOL ran out. All of my income is exempt. However, my question is can they confiscate my vehicle for a 3200 dollar unsecured credit card debt? I live in Minnesota and I have 10 days to answer the financial disclosure. Please help....

Bruno the JDB Killer

  • Valued Member
  • Posts: 13110
Re: Can Collectors confiscate a vehicle for a judgement on a credit card?
« Reply #1 on: August 19, 2013 09:22:05 PM »
Legally, the answer is yes. However, they have to comply with the law. There are certain exemptions your state may grant you. The rules are here:

http://www.mncourts.gov/selfhelp/?page=3511

"Unsecured" means nothing when they have a judgment.

Be careful when you answer the debtor's rogs, (financial disclosure) you can be held in contempt of court if you do not answer in time. They are also under oath.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Clydesmom66

  • Valued Member
  • Posts: 1732
Re: Can Collectors confiscate a vehicle for a judgement on a credit card?
« Reply #2 on: August 19, 2013 09:23:37 PM »
I went to conciliation court to dispute a debt on a Cabela's credit card. The creditor did not answer my letter of validation request and the court date was past the SOL. However, the judge gave them a judgement because he stated that the case was filed before the SOL ran out.

The date the case was filed is the relevant date for the SOL.  Once filed the SOL stops running until the case is dismissed without prejudice then it starts running again from the date of dismissal.  As long as it is filed before the SOL it is viable.  When the defendant is served or the case actually heard is not relevant to the SOL so the Judge's ruling was correct on this one if they did file with the court before the SOL expired.

However, my question is can they confiscate my vehicle for a 3200 dollar unsecured credit card debt? I live in Minnesota and I have 10 days to answer the financial disclosure. Please help....

The answer is technically yes.  However, if the car is financed then even if this creditor forced a sale the primary lien holder would be paid first then they would as a secondary holder.  If the car is not financed they could force a sale but few creditors do this.  The reason is because by the time they auction the car off where it goes for far less than blue book value and the owner gets their exempt amount there typically is little left for the creditor making it not worth the time and expense. 

If the car is paid for an has significant value they could force the sale if it is determined it is worth the effort.  So if you have a car worth $10k, a debt of $3200 they can force a Sheriff's sale and if it sells for $7500.  After that you get the state exemption amount applied (lets say $2k) leaving $5500.  They subtract the debt amount and you get what is left. 

You do have to disclose the asset in the financial disclosure to the court for the purposes of a debtor's exam. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.

trueq

  • Valued Member
  • Posts: 5212
Re: Can Collectors confiscate a vehicle for a judgement on a credit card?
« Reply #3 on: August 19, 2013 09:32:34 PM »
The time to deal with this was before judgment.

When you have a judgment, its best to BK, OR make a phone call and negotiate a deal to payoff.

Judgments, generally, become a secured lien to any real property you own that is not exempt from taking by law.

If your car is not exempt under the asset provisions of your state law, yes, they can take the car.

Generally, they don't want the car, but, instead, want you to pay attention to the judgment you owe them.

In my experience, if you call the opposing counsel and negotiate a lump sum payoff, or (not recomended) at least set up a payment plan, that will resolve the issue.

If you don't want to pay, then file BK protection immediately.

I WOULD NEVER, EVER, DISCLOSE MY ASSETS TO A CREDITOR!

REPEAT!

I WOULD NEVER, EVER, DISCLOSE MY ASSETS TO A CREDITOR!

(At least not without BK protection.)

Filling this out is not a choice at all in my book.

Your choices are:

1.) BK immediately

2.) Negotiate a lump sum payoff with creditor lawyer.

3.) Negotiate a payment plan (which will probably mean you have to fill out the asset disclosure because they want to know what to take from you if you default on payment plan.)   Again, not advisable!

Filling this asset disclosure form out, without doing 1 of the 3 is like a football coach giving the play to the other coach.    The other coach will hit you where it hurts...hard!     
« Last Edit: August 19, 2013 09:39:34 PM by trueq »
My free speech is not legal advice.  If you need legal advice, you need to talk to a lawyer.

Litigation Defense record
Arbitration record:   9 wins * 0 loses
Court Record:         2 wins * 2 judgments (1 of the 2 judgments has been vacated, other judgment upheld on appeal, marked "satisfied", because I wrote a check.)

The one bank that beat me in court, I now have a $2200 limit credit card from them again.
Redemption is always possible.

CleaningUp

  • Valued Member
  • Posts: 9779
Re: Can Collectors confiscate a vehicle for a judgement on a credit card?
« Reply #4 on: August 19, 2013 10:59:03 PM »

The date the case was filed is the relevant date for the SOL.  Once filed the SOL stops running until the case is dismissed without prejudice then it starts running again from the date of dismissal. As long as it is filed before the SOL it is viable.  When the defendant is served or the case actually heard is not relevant to the SOL so the Judge's ruling was correct on this one if they did file with the court before the SOL expired.

The answer is technically yes.  However, if the car is financed then even if this creditor forced a sale the primary lien holder would be paid first then they would as a secondary holder.  If the car is not financed they could force a sale but few creditors do this.  The reason is because by the time they auction the car off where it goes for far less than blue book value and the owner gets their exempt amount there typically is little left for the creditor making it not worth the time and expense. 

If the car is paid for an has significant value they could force the sale if it is determined it is worth the effort.  So if you have a car worth $10k, a debt of $3200 they can force a Sheriff's sale and if it sells for $7500.  After that you get the state exemption amount applied (lets say $2k) leaving $5500.  They subtract the debt amount and you get what is left. 

You do have to disclose the asset in the financial disclosure to the court for the purposes of a debtor's exam. 


The first bolded statement above is incorrect.

Yes, once an action is filed, the SOL is tolled, and remains tolled as long as the case is before the court.  If the court dismisses it without prejudice, the SOL resumes as if the action was never filed. The date that the SOL began to run does not change because of the tolling.


The second bolded statement, while true, fails to recognize that there is little reason to expect that a used vehicle will sell for much more than the book wholesale value which is about 1/3 of what it might fetch at retail.  A repossessor is under no obligation to sell it at retail, which is one of the reasons why auto auctions have so many vehicles to sell.  All but the dumbest of creditors will attach and sell and auto because, in order to make any money on it, they must first pay all of the costs of repo and sale and then satisfy all superior liens on the title. 

That can be an expensive process.

Also, most states have a statutory exemption protection for any first auto which makes repossession and sale not cost effective.  In my state it is $7500, and when one considers that that value is AT WHOLESALE, a pretty good vehicle is for all intents and purposes unattachable.

And so, we have another half-truth from our loveable little horse, Clydesdale.



« Last Edit: August 19, 2013 11:07:33 PM by CleaningUp »