Legal Question in Credit and Debt Law in California

I recently received a letter from a law firm representing a collection agency that bought a debt from an old credit card of mine. I'm not being sued yet. They simply want to hear from me. But if they do decide to pursue litigation I'm in fear of losing my car. The debt owed is $6,461.81. I do not own a home, I rent. My car is my only asset and is already completely paid for. According to Kelly Blue Book it's Trade-In value is $8,384 and Private Party value is $10,394. I'm currently unemployed which is why I'm not worried about garnished wages right now, but I clearly need my car as transportation to seek employment. I know the debt is old, but I'm not sure if it's beyond statue of limitations, but if it is can they still even pursue me for money? I have a couple other credit card debts ranging from $4,000-$10,000. None of which are suing me right now, but I'm curious in the event they try to what may happen with my car. Additionally, I'm in fear of my bank account being frozen. If they choose not to go after my car, will they freeze my bank account and should I remove all my money from the bank? Most of the time I have less than $1700 in my account at any given time. Myself and my bank account are in California, but I am also on my mom's bank account in case of emergencies and she is in Illinois under the same bank. Could they try to go after my mom's bank account just because my name is on it, even though I don't use it and it's in a different state? Trying to be prepared in the worst case scenario. What are they most likely to do if they take me to court? Go after my car or freeze my bank account? What should I anticipate and do in either case scenario? Trying to be as prepared as possible. Thank you so much.


Asked on 3/26/13, 2:02 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

All of your fears are certainly things that could happen in the future, but the creditor first needs to sue you can get a judgment. Once the creditor has a judgment, then that can pursue things like wage garnishments and bank account levies.

The good news is that it sounds like they haven't sued you yet. I recommend setting up a consultation with a local bankruptcy attorney to discuss your options. That chances are pretty good that you can file bankruptcy while keeping your call and all of your cash.

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Answered on 4/01/13, 10:10 am


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