Car Lawsuit?

Question

I have question for all you lawyers out there..

Okay, here's my situation:

I turned a car back into dealership a while back because I could no longer afford the bill, but now they're sending me court papers and demanding that I pay the remaning value of the car...

I'm a single mother, and I CANNOT afford to pay them over $11,000!(nearly $12K) I dont have it to give them. I cant give them something that I don't have. Why are they asking me to pay for car that I DONT HAVE?

What happens if I cannot pay them the money they're asking for? Will they garnish my checks for the next 50 years, or lock me up or anything?

Thanks.

Answer 1

Geez, that sounds like a conundrum! I hope you get some good answers! Dang! Does the dealership realize you turned the car back in to them?

Answer 2

The idea of “turning the car back in to the car dealership” is not something that really happens. You may physically do that, but unless the dealership financed the vehicle for you, they have nothing to do with the car once you leave. All of the financial details exist between you and the financing company. The finance company expects you to pay them the amount you borrowed, plus the interest on the loan. If the dealership financed the car purchase, and you gave them the vehicle, they have duty to mitigate their losses by selling the car. When they do that, you owe them the difference between the amount you owed at the time they sold the car, and how much they received when they sold it. The problem is that they have no real incentive to get top dollar for the car, as you signed a contract to pay for the car.

The reason they continue to ask you to pay the payments is that you owe them the money. Despite the fact that you no longer own the car, you promised to pay a certain amount and they want that amount.

Unless some type of fraud occurred when you financed the car, you cannot go to jail for not paying a debt. They may sue you and receive a judgment against you. Depending on where you live, the way they collect that judgment varies. Garnishment of wages is one likely avenue, as is placing a lien on any other property that you own. If you own your home, they may place a lien on it after they receive a judgment against you. Until you satisfy the lien, you cannot sell your house.

If you have a legal aid service in your area, you should make an appointment to see one of their attorneys. Depending on your individual circumstances, declaring bankruptcy may be an option.

If you still receive phone calls from the collection agency for the car, or for any other debts that you have, you may send a letter to the holder of the debt telling them to cease with all phone calls. Once they receive the letter, federal laws subject them to stiff penalties for calling you. They may continue to send you letters, but at least you do not cringe every time the phone rings.

Good luck!

Will D
Enterprise AL
http://www.notagz.com

Answer 3

You were probably "upside down" on the car, meaning that you still owed more than the car is worth. For example, if they say you own them $12,000, perhaps the car is only worth $9,000.

You should sit down with them and figure out how much you really owe and then agree on a payment plan. Otherwise they will get a formal judgement against you in court and your credit record will be tarnished for the next 7 years. (Note: If you already have bad credit then this won't hurt much more!)

After getting a judgement against you, yes - they can garnish your wages which is embarassing because all of the people in the Personnel department at work know about it, and your boss too.