Collections Law/Judgement

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Expert: Michael Brotherton - 11/22/2007


Question
Background:  
Wanted to trade vehicle for more room.  Expecting 2nd baby.
Negative equity attached to current vehicle.
Salesman advised me to turn vehicle in voluntarily.  Only way to be rid of debt.
Creditor sold vehicle at auction.
$10,000 remained.
Attempted to collect debt.
I was definitely unable to pay.
Creditor filed a judgement against me.

What does this mean, what should I do?  I would have never turned in the vehicle if I had of known this would happen.

Thanks so much,
Melody Pinder

Answer
I believe you were ill advised by the salesman.

A voluntary repo is as bad as an involuntary repo. They have the right to collect a deficiency balance. Once they have a judgment they may be able to attach wages, bank accounts and other assets. This depends on your state. You may be able to offer a payment plan or lump sum settlement for less, however, this depends on what your creditor can get by other means.

Let me know what state you are in and I can give you more information.

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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