Legal Question in Credit and Debt Law in Michigan
Can the plaintiff take my car?
My wife received a default entry for failure to appear,plead,or otherwise defend. we have 3 cars in both are names and all three are paid off. can the plaintiff take the cars as payment?She owes $15,000 to the bank and can't work. I filed bankruptcy on the same loan, but she didn't.
1 Answer from Attorneys
Re: Can the plaintiff take my car?
If you are talking about a loan where the car was security for the loan, then yes, they can repossess the car to satisfy the judgment, which I'm surprised they didn't already do since you don't own the car if there is a lien on it.
If you are talking about a loan where the car is NOT security, any creditor can attempt to execute on their judgment by garnishing your bank accounts, paychecks, or taking assets from your house, including vehicles, until the judgment is paid off in full - exactly what occurs depends on the creditor and how aggressive they are about collecting on their judgment.
I would suggest your wife file bankruptcy if she cannot afford to pay this debt, and depending on her other circumstances.
If you need a referral to a bankruptcy lawyer, please contact me.
Thanks.