I took out a title loan on my car. Instead of repossessing my car, which they said they were going to do per the contract when I fell behind, they sued me and because I didn't answer, I know have a default judgment against me. Can I file Ch. & bankruptcy and discharge it? I am really scared that they are going to garnish my wages
What did you do with the loan proceeds? In order to answer your question, I need to know if you owe that creditor any money on the car?
Generally, absent fraud, judgments are dischargeable in bankruptcy. The creditor still has a secured claim on your car, and can still repossess.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
If these are the only facts, I would think the judgment is dischargeable. Don't go it alone -- hire an attorney. Not all states allow title loans. Your lawyer will know if your state is one of them, in which case you might even be able to get rid of the lien and the debt without filing for bankruptcy at all.