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Can I keep my paid for car?

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    Can I keep my paid for car?

    Hello all

    I just joined so please forgive me for jumping right in. I have two cars. One is paid for and the other I'm still paying on. I live in SC and the exemption for a vehicle is $5000 in the case of debt collections and judgements. So my question is can a creditor take my paid for car without having to pay the $5000 exemption since I have another car? Or does the exemption law apply regardless of the number of cars you own. I ask this because I would let my other car go back to the finance company because I would rather have a car that's paid for.

    #2
    I'm not sure about this but I would say that if you only need the one car then why not go ahead and sell the other to have no payment?

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      #3
      Originally posted by theduc View Post
      I'm not sure about this but I would say that if you only need the one car then why not go ahead and sell the other to have no payment?
      Because I owe way more than it's worth and I don't have the money to make up the difference. I'm better off keeping it but I don't want to lose my paid for car in case I lose my job and can't make the car note anymore. I'm behind on some bills so I'm worried they might can get a judgement.

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        #4
        Originally posted by Christine88 View Post
        Hello all

        I just joined so please forgive me for jumping right in. I have two cars. One is paid for and the other I'm still paying on. I live in SC and the exemption for a vehicle is $5000 in the case of debt collections and judgements. So my question is can a creditor take my paid for car without having to pay the $5000 exemption since I have another car? Or does the exemption law apply regardless of the number of cars you own. I ask this because I would let my other car go back to the finance company because I would rather have a car that's paid for.
        Probably not. I think that they can only seize the asset that is in question. In your case, it would be the car that has the loan attached to it.

        If it would get repo'd, then the lender does have the ability to make you pay the difference between the loan amount and what they are able to sell the car for however. So, keep that in mind. If the car has a loan for $5000 on it, and it gets repo'd and the bank sells it for $4000, then they can come after you for the $1000 difference.
        Brian

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          #5
          Originally posted by bjl584 View Post
          Probably not. I think that they can only seize the asset that is in question. In your case, it would be the car that has the loan attached to it.

          If it would get repo'd, then the lender does have the ability to make you pay the difference between the loan amount and what they are able to sell the car for however. So, keep that in mind. If the car has a loan for $5000 on it, and it gets repo'd and the bank sells it for $4000, then they can come after you for the $1000 difference.
          Well actually it's not the car I'm paying on that I'm concerned about because I'm current on the payments. My concern is that the credit cards I'm a few months behind on can get a judgement on the paid for car in spite of the $5000 state exemption because I have two cars. I"m not sure how all that works. The paid for car is worth far less than $5000.

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            #6
            What about selling the paid-for car and using the proceeds to get current on your credit cards?

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              #7
              Originally posted by scfr View Post
              What about selling the paid-for car and using the proceeds to get current on your credit cards?
              It's only worth a few thousand and that wouldn't even make a dent.

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                #8
                Typically when you get a judgment you have to fill out all of your assets - what they are, amounts owed or if paid in full.

                This may vary from state to state, but creditors do have ways to get their money if a court declares a judgment in their favor.

                And this is just for a judgment of a owing money to a creditor - not a bankruptcy.

                Maybe you could get a free law clinic to answer this question.

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                  #9
                  Credit card debt is unsecured. That means if you don't pay, they can not show up at your door and take your possessions, even if you bought those possessions with a credit card. What they can do is sue you. If they win a judgment, they have the right to collect on that judgment according to the laws of your state. Have you been sued?

                  Christine88, I suggest you get out pen and paper and list your income and your outgo. If you want to post those details here, you will get some feedback.

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                    #10
                    Originally posted by Christine88 View Post
                    It's only worth a few thousand and that wouldn't even make a dent.
                    A few thousand wouldn't get you current? How much are you behind?

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                      #11
                      Originally posted by Petunia 100 View Post
                      Christine88, I suggest you get out pen and paper and list your income and your outgo. If you want to post those details here, you will get some feedback.
                      I 100% agree. You definitely need to get a budget in place to stop the madness before it gets worse.

                      Fortunately, there are a lot of people who love helping do just that!


                      Please let us help you get your finances in order, and post a full budget (income and expenses) for critique and advice.

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                        #12
                        Here is an advice for you. You could give your car on rent to any company, car rent organization or to any tourist. This may help you for the payment as you have another car to use.

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