Summons to Court in regard to default on car loan

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Latest post Mon, Mar 9 2009 3:47 PM by Michael D. Siegel. 3 replies.
  • Fri, Feb 27 2009 5:25 PM

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    Summons to Court in regard to default on car loan

    I received a summons to court for default on a car loan. They repossessed the vehicle and sold it at auction and we are to pay the amount we owe, as I understand and as we should.

    My question is, they have not asked for a list of assets, we don't have many, a paid for truck and a small savings, and a house that we owe $63K on but is worth $92K.  Do they already know what we have? We haven't filed for bankruptcy and aren't likely to. My husband is the sole income earner and is head of household, his taxable income was less than $20K this year.

    When I spoke to the filing attorney after I received the summons, he said that they will speak to me after the judgment in court and arrange a payment plan.

    Since they did not request a list of assets will they take our savings and truck? Or are they likely to entertain the payment arrangement as long as we hold good on the payments? What will happen?
    I'm afraid of losing our vehicle and our savings. We don't have much.
  • Fri, Feb 27 2009 5:36 PM In reply to

    Re: Summons to Court in regard to default on car loan

    Your vehicle is unlikely to be seized.  It takes a lot of time and effort for a sometimes very marginal payoff.

    I might, however, close any known to the creditor bank accounts.  Cash your checks at those check cashing places and pay any necessary bills with money orders. 

    Also, I believe that your state allows wage garnishments, so that one is a distinct possibility.

  • Sat, Feb 28 2009 9:14 AM In reply to

    • Kivi
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    • Joined on Sat, Jan 1 2005
    • CA
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    Re: Summons to Court in regard to default on car loan

    I think that stuff about a repayment plan may be a bunch of you know what.

    You are being sued.  The creditor wants the money.  Frankly, by the time the situation gets to this stage, talk of repayment plans usually cause creditors to "roll their eyes".  They've heard it all before.

    If the creditor gets the judgment (and it sounds like you owe the money), it is going to look for something more than "a repayment plan".  It will either be a bank levy or a wage garnishment once the judge signs the paperwork granting the judgment.

  • Mon, Mar 9 2009 3:47 PM In reply to

    Re: Summons to Court in regard to default on car loan

    The best way to get the best payment plan is to answer the case and appear in court.  Judges will often help work a settlement, and the settlement can be memorialized as a court document, which helps protect you.  Thus, never just wait for a judgment.

    Michael D. Siegel, Esq.

    Siegel & Siegel, P.C.

    One Penn Plaza

    New York, New York 10119

    Phone: 212-721-5300



    Serving the metro New York area, including New Jersey

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