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Vehicle Repossession and possible Bankruptcy Vehicle Repossession

Discussion in 'Auto Loans & Vehicle Repossession' started by Reberle47, Jun 12, 2018.

  1. Reberle47

    Reberle47 Law Topic Starter New Member

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    Jurisdiction:
    Kansas
    Almost two years ago, divorce forced me to return my auto because I could no longer make payments. I’m currently receiving two allotments from my ex: one from the Federal Government and one from the State of Texas. I have a very small Social Security payment also. And four times a year I receive a small dividend. The money I owe for the auto is my only outstanding debt. I can’t decide whether to file bankruptcy or not. If I’m sued and taken to court, can either of the allotments be garnished? If my ex dies, both these allotments go away and I will be living on my Social Security of $556 a month (providing there IS Social Security at that time). Will I still be responsible for the debt if the allotments cease before the debt is paid? Thanks for your help!
     
  2. zddoodah

    zddoodah Well-Known Member

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    So...four things total: two allotments from your ex AND something from both the federal government and the State of Texas? I assume that an "allotment[] from [your] ex" is not also something "from the Federal Government" or "the State of Texas."

    Impossible to say without knowing exactly what these "allotments" are.

    Nothing in your post suggests any correlation between any "allotments" and your liability for the deficiency balance on the car.
     
  3. Reberle47

    Reberle47 Law Topic Starter New Member

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    Sorry for the confusion! My income is the two allotments from my ex, my Social Security and the quarterly dividend. Period. Those allotments go away when something happens to my ex (who turns 75 this year).
     
  4. zddoodah

    zddoodah Well-Known Member

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    Doesn't "something happen[]" to him several times every day? Or are you talking about when he dies?

    In any event, as I mentioned, the extent to which the "allotments" are subject to levy or garnishment depends on what they are.
     
  5. Reberle47

    Reberle47 Law Topic Starter New Member

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  6. Reberle47

    Reberle47 Law Topic Starter New Member

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    when he dies the allotments from the Military (federal) and Department of Public Safety (State of Texas) will stop. I’m assuming that the car company can sue me and take money from either of these allotments. In the State if Kansas, how many years do they have to bring me to court and sue, five or three? I bought the car and signed the contract in Texas. I released (turned the car back in) in Kansas nearly two years ago.
     
  7. zddoodah

    zddoodah Well-Known Member

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    So...we're talking about pensions?

    If, in fact, we're talking about pensions subject to ERISA, your assumption is incorrect.

    The Kansas statute of limitations for an "action upon any agreement, contract or promise in writing" (which would include an auto loan agreement), except for contracts for the sale of goods (which is not applicable to your situation), is five years. Kansas Stats. sections 60-511(1) and 84-2-725. However, since the loan agreement apparently was made, it's possible (likely even) that Texas law would govern, and the Texas SOL is four years. Tex. Civ. Prac. & Rem. Code section 16.004(a)(3).
     
  8. Reberle47

    Reberle47 Law Topic Starter New Member

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  9. Reberle47

    Reberle47 Law Topic Starter New Member

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    Both ‘allotments’ are indeed pensions and I report them as such when I file my taxes each year.
     

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