Legal Question in Credit and Debt Law in Arkansas

paying back reposession debt

I had a car repossessed in 1996. I bought it for around $9,000 and it was still in top condition when repossessed. The Law Firm Hosto $ Buchan, PLLC, has begun garnishing my check for the amount they say I owe which is now around $13,000. I was told by a CPA that they can only garnish my check for the difference of what I owed and what the car was later sold for. The car was sold at auction, according the the law firm. They won't give me any help and said there is nothing I can do about it. What are my options? How can I get the legal documentation showing the amount I owed the company at the time of reposession and the bill of sale for when they sold the car at auction? I told the firm I am at a point in my life where I want to pay off my debts but I only want to pay for what I truly owe. I thought about filing a chapter 7 in order to cancel the garnishment but I feel the attorney fees for that would cost just as much as what I actually owe on the debt. I have already paid around $1,300 through the garnishment. I can't even work overtime because they just get more money.

Thank you,

Adrian


Asked on 4/21/03, 4:17 pm

2 Answers from Attorneys
Richard Orintas Orintas Law Firm

Re: paying back reposession debt

Please call 501-225-1665 to discuss this problem...

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Answered on 4/21/03, 5:19 pm
Herb Southern The Southern Law Firm

Re: paying back reposession debt

You might want to reconsider that fees thing. The amount they can garnish is what the Court lets them. The fact that yoou have a garnishment tells me that they sued you and you did not answer the suit and they then got a judgement against you. The amount they can get is the amount of the judgement plus Atty fees and costs.

OTOH, a typical Atty fee for a chapter 7 is 500-800 plus 200 filing fee. A heck of a lot less than the amount they are trying to get.

Just to let you know, most of these companies will take the reposessed car and wholesale it for 500 or so and hit you for the full amount of the balance. It does not matter much that the car was worth 13K before the repo and they only got 500 for it when they wholesale it to their buddy down the street. Incidentally, quite often the buddy down the street will wholesale it back for 600 and it ends being sold by the same folks for 13K again.

Call us if I may be of service. 479-582-5800

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Answered on 4/21/03, 6:24 pm


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