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I was served papers


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Me and my wife got behind on our credit card payments. The bank has now seved us papers to appear in court. We owe them almost $4900.

What happens next? If a judgement is filed against us will they take my car or put a lien on it? Garnish my wages? I would rather have them garnish my wages than lose my car. The credit was unsecured.

We live in New York state

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If your car is financed, then its highly unlikey that they can do a thing to it. If its paid off, but not worth enough for a creditor to recover the amount of the debt, again, they won't take your car.

If you DON'T go to court, they WILL win a default judgment. In NY, they CAN garnish up to 25% of your disposable income (net pay). The catch is, judgments last a long time and can be renewed in many states. Even if you don't have anything they can sieze today, you MAY have something they can take a few years from now. That's what they keep looking for, besides garnishable wages.

You need to file your Answer to their Complaint and you also need to file your list of exemptions with the court. This will keep them from making a grab for any of your non-exempt property.

You can find the exemptions list here:

http://www.thebankruptcysite.com/exemptions/newyork.htm

Here you can learn how to file your Answer to the Complaint:

http://www.nwjustice.org/docs/205.html

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