The Law Forums will be shutting down on June 30, 2017. We encourage you to resolve any outstanding discussions prior to that time. If you have any questions about this change, please email

Repossessed vehicle in Florida.

Previous | Next
 rated by 0 users
Latest post Fri, Feb 24 2017 2:28 PM by ca19lawyer2. 2 replies.
  • Wed, Feb 22 2017 8:48 AM

    Repossessed vehicle in Florida.

    My mother-in-law is 75 years old and lived in Florida up until 1 year ago. At that point she was diagnosed with terminal cancer and needed to move back home to Massachusetts for treatment. 
    She had a loan on a vehicle with an outstanding balance of approximately $18,000. The bank repossessed the vehicle a year ago when she moved. She is now getting a statement from the bank saying she owes $8,000 for the remaining balance on the vehicle. She has no assets, house, car, etc.
    Her only income is $382 a month from a pension and $2,032 from Social Security. Her only  other asset is a IRA with about $14,000 in it, which supplements her monthly income.
    Is there any action the Creditor can take to recover this $8,000 from her? What reply should we give the Creditor regarding these demands for $8,000?
  • Wed, Feb 22 2017 10:23 AM In reply to

    • Kivi
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,363

    Re: Repossessed vehicle in Florida.

    The creditor can sue her and get a judgment. With a judgment, which would have to "domesticated" in MA if the judgment if entered by a FL court, the creditor could try to levy her bank account. Make certain that her bank knows that her only income is from pension income plus SS. Generally speaking, pension and SS income is exempt from a bank levy as long as the amount in her bank account is not over two months worth of such monthly income.There is probably some kind of form that she may need to fill out and file with her bank. 

    Retirement accounts generally are exempt from garnishment/bank levy as well. 

    Whether the creditor will actually go after her is anyone's guess. 

    You idicated that your MIL's cancer is terminal. The creditor can file a claim against her estate when the time comes. The executor or personal representative would have to deal with it. However, any IRA, if not depleted at death, would pass directly to the named beneficiary without going thru probate. Your wife (I assume that she is probably handling these matters), also may be able to set up her MIL;s bank account so that it is payable to your wife once her mother dies. That would eliminate the need to any probate proceeding for that asset as well. I don't know if your MIL has any other assets that might have to go thru probate. That is something that your wife probably should disucss with her mother.

    I would be tempted to ignore these letters. By the time, the creditor actually goes to court, gets that judgment, etc., the chances are good that it is her estate, if she has one, that will have to deal with the issue. If she does not have any other assets and there is no need for probate, the creditor will just have to "eat this one". Your wife is not personally liable for your mother's debts unless she cosigned that loan with her or she is the exetress/personal representative of her estate when the time comes and she chooses to not deal with the matter at that point. 



  • Fri, Feb 24 2017 2:28 PM In reply to

    Re: Repossessed vehicle in Florida.

    The creditor can sue your MIL and obtain a judgment against her.  The assets and income streams you have mentioned are exempt from enforcement of an ordinary civil money judgment.  You are free to inform the creditor of same.  After your MIL dies, the creditor can make a claim against her estate; at that point, the assets will no longer be exempt.  However, an asset like an IRA typically has a named beneficiary.  If it does, it will pass to the named beneficiary outside the estate and will not be subject to any creditor claims.

Page 1 of 1 (3 items) | RSS

My Community

Community Membership Search Community