[daggettfamily]

Civil Suit

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I owned a mobile home about 3 years ago and was young and dumb, got into a high interest rate loan and could not make payments, voluntarily left and have been renting ever since. Now 3 years later am being sued I questioned the debt of about $35,000 when the loan was only $39,000, asking for the bill of sale which they produced and the home was sold for $6,000, now they are suing me for the rest. I know I owe them something but if they sold it for a ridiculous price like that will I still owe them all that? It seems like it is somewhat their fault for selling it for such a small price, if they really did? Anyway I live in Texas and don't think they can garnish wages I own nothing, except for a 1998 car worth maybe a $1,000. What is the worst verdict that the judge will pass and the best? Should I look into Bankrupcey before or after the verdict? THanks for any info.

[Fr_Chuck]

No, that is what happens with moblie homes, cars and other personal property. ( assuming the mobile home is personal property in your state)

The repo it, and sell it at auction for what it brings, in some states they are allowed to bid on it thierself, in other states they can't. But they are sold "as is" and if you are ever buying, this is where to go if you have the cash or lines of credit to get them. ( I personally don't fool with mobile homes , don't know why just dont)

But honestly I am surprised that you owe less than the orgainal loan, normally you will owe more, after the legal fees, the repo fee, the auction fees and transportation fees, you will owe more on the home then you did when you lived in it.

Please check with an attorney, the last I tried to collect money from someone in Texas that owed me money I could not garnish their wages there. Bankruptcy is a option.

So what you need to do is go talk to an attorney , many will give you a short visit free if you are discussing bankruptcy and will give you some options, and will tell you about the garnishment laws currently, things change and I am not up on them.

But yes, this is stupid and silly for them selling so cheap, but these are the trailers and homes you see the ads on TV for buying cars, and homes for pennies on the dollars, this is the type of buys they are talking about.

[excon]

I live in Texas and don't think they can garnish wages I own nothing, except for a 1998 car worth maybe a $1,000. What is the worst verdict that the judge will pass and the best? Should I look into Bankrupcey before or after the verdict? THanks for any info.

Hello family:

Oh, I think they CAN garnish your wages. Why do you think they can't? If you lose, the judge will award ALL the money to them PLUS attorney's fees. Bankruptcy BEFORE will work just fine.

excon

[Cvillecpm]

It is the deficiency between the amount they go for the home and the amount you owed WITH their FEES.

You are SOL unless you can come up with some money to offer them to make it go away - start with 1/2 of what they want if you can get your hands on it.

[ScottGem]

I do think Texas law prohibits garnishment of wages. But you need to start thinking of your future. If you were "young and dumb" three years ago then you are still pretty young.

As the others have said, this is not atypical. You made a BIG mistake in just walking away from the trailer without trying to sell it. Now you are paying for your mistakes and will continue to pay. Having a judgement against you is going to have repercussions in your obtaining any sort of credit for a number of years.

Your best option is to try and settle with them for something you can live with.

[excon]

I do think Texas law prohibits garnishment of wages..

Hello again family:

I didn't know that. Cool. That changes everything. IF you own nothing, as you say, you're judgment proof. That's even better than bankruptcy, because it doesn't cost a nickel to get that way. Of course, you'll have to stay that way for a while. Judgments can be renewed sometimes for 20 years, but they usually end after 5-10 years.

However, the good news about being judgment proof, is not that you get to beat the lender. It's that by being so, you are in a very good bargaining position to settle your debt with them. I would try to do so. You can probably settle for $.10 on the dollar.

Then, you can buy a house and not worry about it.

excon

[ScottGem]

From this site:
Payroll Texas, Unique Aspects of Texas Payroll Law and Practice

Except for taxes and student loans there are no garnishments in Texas. No creditor other than the IRS or one of the student loan collection agencies can take money out of your paycheck without your permission.

[Cvillecpm]

The Nolo Press website will have this information.