Q: Options for title loan default and SSI protection in Idaho?

A: Hire an ID attorney to determine your State Exemption Rights, as well as how to protect SSI benefits. Once that SSI is in a bank account, it might get garnished.

A: In your situation, it's important to know that SSI income is generally protected from most creditors, including title loan lenders. This means the lender cannot directly seize your SSI income to repay the loan, even if they obtain a judgment. However, they may attempt to take other legal actions to recover the debt, such as seizing the vehicle, unless the car is exempt under state law.

Since you are no longer using the car and offered to sell it to pay down the loan, it seems reasonable to request the title from the lender. If they refuse to provide it, you could contact the Idaho Department of Finance or consult with a legal professional to understand your rights and options in this case. The lender may be required to provide the title to allow you to sell the car, as they have no interest in keeping the vehicle.

If the lender does proceed with a judgment and attempts to seize the car, you may be able to claim an exemption for the vehicle if it is necessary for your transportation and income. You can explore other options, like negotiating a settlement or arranging a payment plan that works with your SSI income, to prevent further escalation. A legal professional or consumer rights advocate may help you navigate these options and ensure your rights are protected.