Legal Question in Credit and Debt Law in South Carolina

Re: Personal Loan with Citifinancial

While they can pursue magistrate's court for a judgment, there's not much else they can do. All SC homeowners enjoy up to $50,000 in exempt equity that cannot be taken by their creditors. So, unless you own a considerably larger portion of your home outright, most creditors will not be able to force a sale of your home (other than your home lender through the foreclosure process).

Once they get the judgment, they can execute against any nonexempt property you have. But if you don't have any nonexempt property (and a good many consumers in SC do not), then you're considered "judgment proof" and the judgment will simply sit on the records for 10 years. It cannot be renewed.

If they do sue you, even in magistrate's court, don't just let it go unanswered. Failure to answer a complaint that's filed in court waives your defenses, and you could have some. For that reason, I would encourage any one who is sued on a consumer debt to consult a consumer attorney who can advise you as to your rights and any available claims you might have against the lender, which could offset or even negate your liability.