Legal Question in Credit and Debt Law in New York

Re: Debt

Lack of funds is NOT a legal defense to a law suit brought by the car dealer to recover any funds owed on the returned car. YOu must diligently oppose any law suit filed by the dealer (if and when that happens) so that you are sure you are not being cheated. The dealer is probably entitled to the difference between what the car cost and what they got for it at auction (how do you know they got good value for it?) ALso, they tack on legal fees, expenses of all kinds, interest, etc., so that you are paying far more than the mathematical difference. When you approach them, ask for all the information to make sure that you are not getting cheated and then try to make your best deal (since you do owe money...). Good luck.

Re: Debt

Your goal under these circumstances is to avoid a judgment being entered against you. A judgment remains enforeable for 20 years and enables the creditor to garnish your salary and/or seize your assets. You should contact the creditor and see what, if any, special arrangements they are willing to make. Often times, the creditor will accept any amount of payment you can make until such time you can increase same.