Welcome to the world of court judgments. A creditor with a court judgment can take any and everything that isn't protected by state laws called exemptions. In some states, you have to affirmatively assert your claim to these exemptions or the property will be gone. I am posting a link to a description of theses exemptions for all 50 states for you to be able to see the ones for your state.
There are many problems with having a creditor seize your property to pay a judgment as you are now seeing, but the worst is that your property is sold at a low value and the expenses involved in seizing and selling the property must be paid before any of the judgment debt goes down. Hope this perspective helps!
Yes this is legal. A creditor can refuse a payment plan and pursue all available legal remedies to obtain payment on a judgment.
Your car was seized and sold because you did not file a "Motion To Claim Exempt Property" after being served a "Notice of Right" to claim your exempt property - or if you did file your Motion on time, the car was not claimed as exempt.
They can ask for more money now if there if the sale of the car did not bring in enough money to pay off the judgment in full. I am assuming there is still a balance due.
You should consult a lawyer now just to make sure there is nothing else besides your car that they can take. Even if they agree to the $200 a month, if you skip a month's payment or are late on a payment, they may try and take something else. If you have a lot of other debt or if the balance on this judgment is substantial, bankruptcy may be a good option for you. I suggest consulting a qualified bankruptcy attorney in your area. A bankruptcy attorney will be able to tell you what else (if anything) they can take and whether or not bankruptcy is the best option for you.
This message is intended for informational purposes only. It is impossible to consider all relevant facts from a message board question. No attorney-client relationship has been created. Readers should seek a personal legal consultation with an attorney of their choice for the most accurate advice.
If a writ of execution was filed, it means that you were served with exemptions and ignored them or filled them out wrong. It also means that your car was probably owned free and clear and worth enough to make a sale worthwhile. Of course they can come back for more if more is owed on the judgment. And there is no law which obligates a creditor to accept $200 a month. What is relevant is not what you offered but how the large judgment is or was.
You have handled this very badly and I don't know if the situation is even salvageable - possibly with bankruptcy. I suggest that you consult an attorney, Had you done so when you were first sued or when you were served with exemptions, you would not be in this predicament.