If I am being sued by a collection company, can they sell my belongings?

Question

I am being sued by a collection company for $2,100.00.  I owe other Creditors also.  I have had breast cancer, surgery and radiation, also recent finding of a mass in my pelvis, having biopsy Mar. 10 2014.  I am on SS, and SS disability.  I am low income, (less than $775.00 a month).  I am worried that they can come and sell my 1969 mobile home I own, and live in on a rented lot.  That they can sell my only transportation, a 2000 F-150 pickup truck, (in my name but buying from my brother for $2,300.00).  Only transportation to doctor appointments.   That they can sell all my household belongings.  I own nothing of any real value.  I am very worried and just so sick about this on top of worrying about my health.  What can I do?

Marlin Branstetter · Answer

In California no. Your Social Security payments cannot be attached by a creditor. All the other property you listed cannot be seized by unsecured creditors. Your creditors may threaten but your property is safe.

Michael McFarland · Answer

Under the circumstances you have described, if you are in Idaho, you appear to be "judgment-proof".  That means, even if a collection company gets a judgment, there is nothing it can take.  No creditor can take your Social Security, and your mobile home and vehicle are exempt from attachment.  You may still want to consult with an experienced bankruptcy attorney to verify that what you do have is all exempt.

Daniel Garner · Answer

It sounds like you may very well be "judgment-proof" meaning you would have no assets the creditors could take. As low as your income is, you probably qualify for legal aid, so call the legal aid office in your area and ask for help. You can probably get a bankruptcy pro bono, and while you're waiting for that, they should be able to tell you how you can write letters to the creditors asking them not to harass you anymore. You have enough to worry about without harassment from bill collectors, and they might even appreciate knowing that they're wasting their time trying to collect anything from you.

Dorothy Bunce · Answer

State laws called exemptions provide what property a creditor that has a court judgment against you can take.  In most states, you can keep all your household goods and some money in the value of a car.  In Nevada, you can keep up to $12,000 of household furniture & furnishings and up to $15,000 in a vehicle.  Keep your social security money in an account that never ever has money from any other source going into it and discuss the concerns you have about this lawsuit with your bank manager.  If you don't like the answers you get, go to another bank and ask them how they act to protect their customer's money from judgment creditors before switching your accounts.  This is not a problem that will kill you but you need to be smart and act promptly to protect yourself.

Marjorie Guymon · Answer

They will try to take your assets but in Nevada they are all exempt. You must assert your exemption in the court proceeding to avoid their taking the assets.  Or, you could file bk and discharge all this debt. Your assets would be exempt.

Stella Havkin · Answer

Collection agencies typically only go after money in a bank account and real property.  Your car is exempt in any enforcement proceeding in the state court through a claim of exemption process.

Richard Gonzales · Answer

Do not worry about your situation. You are "judgment proof". Even if the creditor gets a judgment against you, they can not touch your SSI or Social Security money. Also, in every state, certain property is "exempt" from creditors (i.e., creditors can not touch that property). Google "Colorado Exemption Laws" (or whatever state you live in), and you should see a list of property exempt from creditors in that state. Again, there is NO NEED to worry, you will be fine. Good luck my friend!

Daniel Edelman · Answer

In Illinois, most of what you have can be exempted.  The vehicle is less than the amount for which a vehicle can be exempted.  Social Security is exempt.

Nicholas Best · Answer

A collection company cannot sell your assets (including your home, motor vehicle and belongings), unless they have a security interest in those assets. However, they can garnish your wages if they receive a judgment against you. Since you are on social security disability, this is not something you currently have to worry about. Based upon the description of your situation and debts, you appear to be a candidate to file bankruptcy. In bankruptcy you can discharge all of your unsecured debt (credit cards, medical bills, etc.) while retaining your assets as long as they fall within the provided exemptions. Since the value of your assets fall on the low end the spectrum, it is likely you will be able to retain all of your assets.

Mark Cherry · Answer

Try to get a pro-bono bankruptcy attorney to help you. Contact your local Bar Association or Legal Aid office.

Thomas Vogele · Answer

I presume you have not spoken to a bankruptcy lawyer yet, but you need too do so immediately.  You might also get help through a pro bono program run by the Court.  You can file a Chapter 7 bankruptcy petition and discharge all of your debts and protect your home and vehicle through exemptions.  Call the local bar association and ask for a referral to a low-cost bankruptcy lawyer as soon as possible.  Good luck.

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If I am being sued by a collection company, can they sell my belongings?

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