Legal Question in Credit and Debt Law in Illinois

My daughter has a travel trailer camper in our driveway. She has legal title and state registartion in her name. The trailer is paid off. My wife owes $5000 on a credit card that got a default judgement against her. She was sold signer on the credit card. We 5 months ago owned the travel trailer jointly. We sold it to my daughter who lives with us for $1.00.

Can they take the travel trailer to pay for my wifes credit card dept?? Can they send a repo guy to tow it away? Do we go to court first? We owe the dept but are not able to pay. Wife lost job after 15 yrs. and I'm working part-time and on Social Security. Wife get un-employment checks.

Thanks.


Asked on 9/27/11, 7:20 am

1 Answer from Attorneys
Kenneth Goetz

The key is the circumstances under which "we sold it to our daughter". If the creditor had a security interest in the trailer at the time of the transfer, that security interest still attaches. If the creditor had no interest in the trailer, then creditor does not have a current interest in the trailer. Creditor may sue you and your wife for an improper transfer (a transfer for less than the fair market value of the trailer). Obtain a judgment and then foreclose on the judgment.

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Answered on 9/27/11, 12:31 pm


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