Legal Question in Credit and Debt Law in California

Yes, your car can be taken but that it is rarely done because of the amount of legal work required and because of the cost of taking the car, storing it and auctioning it plus your vehicle exemption under California law protects some or maybe all of the value of the car. Most likely the collection action will be to garnish your wages and/or levy any bank accounts in your name. Transferring the car is not a good idea. Transferring property intentionally to avoid having it taken by a creditor while you are insolvent and without getting paid the value of the car is a fraudulent transfer or conveyance and can be set aside by the creditor (or the trustee in bankruptcy) and you could lose the car exemption out or in bankruptcy. While the credit card on most of the car will not be legally enforceable 4 years after default, that does not mean it will not show on your credit report as outstanding. You still owe that money but they can'd sue you for it. Also, the judgment is initially good for 10 years and renewable for ever and it is growing by 10% per year. Bankruptcy may still be a good option to get rid of the judgment and to have your credit report show that you do not have any pending debts. That is the only way you are going to be able to re-establish credit unless you wait many more years. Alternatively, you can settle the credit card debt with small amounts and even the judgment but you will need lump sum amounts of cash available to do that. Bankruptcy should improve your credit score given your bad credit and little prospect for improvement now.