Consumer Credit Transaction

[skyman]

I have a Consumer Credit Transaction served to me. I have a credit card that I have not paid on for two years. At the time we obtained the credit card we were fine. We paid on it when it was due, however, 5 months after we got this card my husband lost his job. By the time he got a new one 2 months later we were behind in all our bills. He kept the new job for about 3 months and then ended up in a mental hospital with BiPolar 1 and other serious physical illnesses. His case manager filed for disability, it took six months to get a denial from them but it was the wrong disability (workman's comp. disability), Had to re-file with social security disability last july, got turned down in Dec. 2008, got a lawyer early in Jan. 2009. That lawyer tells us the hearing will be in 665 days. In the meantime, I am doing what I can to pay the bills. I am not denying the debt. I cannot pay the debt right now. Credit Card companies do not care if you have no money. Sorry this is so long. My question is this. My son's car is in my name. It is a 1988 Pontiac. Not worth anything and falling apart but he needs it for college. I need to know if I should transfer the title in his name before the answering to court or not. I do have my own car that I still owe 2 1/2 years payments on. I am not sure what to do, and I do not want my son to lose his transportation for college. I am told they can't take my car as it has all those payments left. I could use some advise about now. Thank you in advance.

 

[dee_dub]

When a judgment is executed against you, certain possessions are exempt. As far as I'm aware, your car is not exempt just because it has payments left. But it may be exempt under the laws of your state because you are allowed to keep a car. I am doubtful that you will be able to keep both cars.

I would caution you against transferring the car your son uses into his name. You might be liable for having committed a fraudulent transaction to defeat your creditors. I know the car isn't worth anything, but it is an asset of yours and should be listed as such. If it is imperative that he continue to have use of it, you may be able to plead hardship and have it exempted by a court, or it may be that it's just not worth it to the credit company to take it.