Legal Question in Credit and Debt Law in New York

Re: Consumer credit transaction summons

I'll try to clarify what the other attorney has stated. I am going to assume that the summons you got was from a law firm and not a collection agency and that it is genuine...not something intended to scare you into paying. If it is real, you have to go to the court that issued the summons RIGHT AWAY and ask to speak to the PRO SE (pronounced "PRO SAY") clerk. That's the person who helps people who are representing themselves without a lawyer. You will tell the clerk you want to "answer" the complaint. The clerk will give you a form and you have to fill it out with whatever you feel will hlep you to reduce the amount you owe (if that is possible). Your wife IS liable because she co-signed the loan. She told the finance company that she'd be responsible for repayment (that's why they lent the money...) so she cannot now say the car was for her son. Without her, the loan would not have been made...you may want to negotiate a lower payment (settlement) and most attorneys will do that (not happily) to avoid the effort in obtaining a judgment. If you do not answer the summons they will get a judgemnt against you for more than you actually owe becuase the court will add in accrued interest, court costs and possibly attorney fees (all due because of the contract your wife signed). Avoid that by answering (see above). Also, the judgment is a lien against the house...but they will NOT be able to sell the house out from under you. Note that judgments continue to accrue interest at 9 percent per year...on $4000 thats $360 per year more...salary can be garnished, bank accounts can be seized...try to negotiate a monthly payment you can afford and stick to it...

Re: Consumer credit transaction summons

Okay..you have 30 days from the date that you were served (if not personally, in which case you have 20 days) to put in an Answer to the complaint. It is important that you do so or else a judgment can automatically be taken against your wife. Most people make that error.

Next, whoever signed the loan is liable. If you wife co-signed, she's on the hook as much as your son. Let's face it, she signed to help him out.

Nothing can be taken from you unless you have a judgent against you, which could happen if you fail to answer.

Feel free to contact me with any questions.

Good Luck.