I need some opinions. I am being sued for an old car loan in the amount of $15,000. I have 20 days to respond. It is an attorneys office representing the creditor. The only thing included with the summons was a copy of my original loan agreement with the car dealer. This creditor was not the loan agreement, only the original creditor was listed. (it was sold at the time I stopped making payments) Here are my options - 1 ) File Chapter 13 immediately on this loan, $9000 in income tax debt (from 2002) and $4900 in credit cards. I can't file Chapter 7, I filed in 2002. The car was purchased AFTER the BK so it was not included. Convert to a Chapter 7 in 2010. The IRS is not bothering me at all. I've talked to them many times. I am current on all my credit cards and in good standings with them. 2) Take the judgement and chance my wages being garnished and bank account frozen. (and they will be) If that happens, then file Chapter 13. Wages can be garnished in my state up to 25%. The judge can lower it to 15%. ( I make under $25,000 a year. ) 3) Respond to the summons to buy more time. What would you do? I have an appointment with a BK attorney tomorrow. (which I can't afford and have no clue where the money would come for the attorney in the event I go with a Chapter 13)
Do you still have the original contract you signed with the lender? Who is the lender? What state are they in? You may want to study that contract very carefully to be certain what it says. It isn't important when the car went back but it just might be important when you made your last payment to the creditor. When did you make that last payment? Can you prove that date? If you don't have the original copy of the contract with the lender getting a copy could prove highly valuable to you.
