Can a judgment creditor take my security deposit on my leased Automobile. The lease was taken out before the judgment was obtain if that makes any difference. Of course, if they can do this, ford will want their car back. Can I use the wildcard exemption in Washington state to protect this amount of $1500.
It is very unlikely that a judgment creditor could take a security deposit for a lease. The car company as long as the lease is valid and they have a security interest in the deposit has first dibs on the money. If the lease is over and you have a right to the money again then the creditor theoretically could go after money that is yours. But if you lease in effect then the car company has a security interest in the deposit for the lease. If you are filing bankruptcy you list it the as a security deposit and the car creditor as the lienholder. Hope this helps.
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Chapter 7 Bankruptcy Attorney
Whether the security deposit on your car is exempt or not, it is highly unlikely that Ford would be willing to relinquish this money to a judgment creditor while the lease of your vehicle is active. Alter all, they have a legal right to keep this money while you lease the vehicle and to look to the deposit to compensate them for any damages or excess mileage on the vehicle. I can just imagine Ford's big legal department's reaction to a claim like this. If your deposit were to be refunded to you soon, it might be a more difficult question.
Hope this perspective helps!
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Chapter 7 Bankruptcy Attorney
Security deposits are generally exempt. I have never heard of this happening before.
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