Asked in Bankruptcy for North Carolina

Q: I was recently given a summons for a $6,000 loan I do not want to lose my vehicle.

I defaulted on a loan for a little over $6,000 I was recently given a summons by the sheriff on behalf of the loan company. I'm currently unemployed due to the virus I'm very worried about losing my vehicle as it is my last life line (Uber) if I am taken to court with a judgement. I do not want to have my vehicle garnished or have my wages garnished as well. Can anybody please offer me any advice

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1 Lawyer Answer
Mr. Albert Loch Saslow
Mr. Albert Loch Saslow
  • Bankruptcy Lawyer
  • Greensboro, NC
  • Licensed in North Carolina

A: You shouldn't have to worry about wage garnishment as that isn't allowed under NC law. However, there is a chance your vehicle could be seized. Whether that happens is going to depend on the amount of equity you have in this vehicle, and to what extent you can "exempt" this property from the claim of the creditor.

If you actually owe the money and there is no valid way you can fight the lawsuit, your options are limited to trying to work out a deal with the creditor (through the attorney), or accept that they will get a judgment against you and then trying to protect your assets (the car) before they can come and get them. They may be wiling to accept less than the full amount owed, or may agree to accept payments over time. If they do get a judgment, they have to send you additional paperwork related to your ability to claim property exemptions. It is on this paperwork that you can take the steps necessary to claim any and all of the exemptions that might be available.

You are going to want to speak with a bankruptcy attorney in your area about working out a deal with the creditor and about the property exemptions. It may be possible that you can fully protect your car, but I couldn't say for certain without additional facts.

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