“Dear Steve,
I had a 2006 Honda Accord EX and a signature loan from my credit union. I got laid off and couldn’t make either payment. The CU put both loans together at one point, but I still couldn’t make the payment, so I voluntarily returned the car.
They sold the car, and I still owe $22,000, which I cannot pay. My husband works, and I am on state disability. We have no assets as we rent and our other 2 cars are being paid off. We have a checking account that we take down to the almost zero each month.
We received a summons saying that the CU is suing us last week. I have 30 days to reply.
We filed BK in CA in 2005.
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What are our options? What can they do to us? Can I get an attorney for this?
Liz”
Dear Liz,
They could win their suit and garnish his wages for starters if the car loan was in joint names. Unless you either pay the debt in full or enter into a payment arrangement for the past debt you can afford then your only option that gives you any protection is going to be a Chapter 13 bankruptcy.
While you might not have any assets to speak of right now, you will in the future. A judgment against you will sit there and get bigger and bigger as the interest charged on the judgment grows.
You should click here to find a local bankruptcy attorney to discuss this with. This is a serious situation, don’t delay in getting legal advice.
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