Legal Question in Credit and Debt Law in New York
Subpoena Already Issued
Good Day, I have a subpoena issued for a car loan that I have been unable to make payments on. I think it is the belief of the lender that I still have this vehicle that was unfortunately totalled in an accident (I've explained this however w/ a change in the household income shortly after the accident, payments were hard to do). I am the sole income provider for--name removed--household and presently have trouble fulfilling other bill payments. I have gotten word the legal office handling this claim is now trying to acquire information about work status and income.
Besides the major embarrassment, can they go about getting this information without notifying a person? Can they garnish the paycheck even though I am VERY strapped for cash as it is? Can I make tiny payments to the legal office without making arrangements with them (I have had enough nasty conversations with the original company that I do not want to engage in talks with another group since they are on their behalf) to halt any garnishing of the paycheck?
I am unfortunately having a tough time making ends meet as it is; a lien on the paycheck in any way would be a great hardship.
What can one do? Any help would be greatly appreciated.
Thank you!
2 Answers from Attorneys
Re: Subpoena Already Issued
If the judgment is large, perhaps bankruptcy would be an option for you. Bankruptcy would wipe out the judgment and any other debts and give you a clean slate. While the petition for bankruptcy is pending, all debt collection is stopped.
Re: Subpoena Already Issued
There is nothing that prevents a judgment holder from obtaining information reasonably related to the collection of the judgment. That you don't have the car does not relieve you of the obligation to pay for it (someone has to pay--why not you?) especially since it was your car. If you had insurance it should have paid for all or most of the damages in the accident. If not, the loss was your risk. Judgment creditors can get 10% of your gross salary per month UNLESS YOU BRING ON A HARDSHIP PROCEEDING. YOu should get the law from the judgment creditor they have to advise you of it when they attempt to garnish your salary...they can also hit banks and restrain funds in it...and they can do both garnish and restrain...good luck. PS. Tiny payments won't stop enforcement. Large payments won't stop enforcement...Payment in full stops enforcement.
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