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Collection Agency seized parents car

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Anonymous
Not applicable

Collection Agency seized parents car

Small back story: In 2008, my mom got diagnosed with a disorder that has her in a wheelchair. This forced her to quit her job which resulted in my parents income being cut in half. Because of this, they defaulted on many loans including a 30k HELOC.

 

Near the end of 2011 and pretty much all of this year, a law agency that the bank hired has been trying to collect. I believe they have put a lien on their house, they froze their bank accounts and took all the money from there (about $2.5k), got a court order to seize the contents of their safety deposit box at the bank. This past weekend, they said two officers of the court came with papers from the court to seize their car.

 

My parents have tried on multiple occasions to set up a payment plan but they keep shooting them down. My dad is considering Ch13 BK to get rid of this debt.

 

As far as the car goes, they got a letter that they are selling the car at an auction in the parking lot of the court in a couple of weeks. My question is, at this point it is too late to get that car back, correct?

 

By the way, this is in Michigan.

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: Collection Agency seized parents car

Another note, this car is 8 years old with 200k miles and according to KBB it is worth less than $2500 

Message 2 of 4
llecs
Moderator Emeritus

Re: Collection Agency seized parents car

Wow. If they had a court order, then they can do that. The court should/might give you a document showing how your family can stop the sale, but that would mean paying off the balance of the HELOC first I believe.

Message 3 of 4
RobertEG
Legendary Contributor

Re: Collection Agency seized parents car

+1

Seizure of personal assets to fulfill satisfaction of a judgment requires a court order authorizing the execution of the judgment.

Has she contacted the court to assure that their seizure was legal?

 

If supported by a court order, their is little recourse.  Especially since they have apparently already taken possession of the vehicle.

 

If not supported by a court order, then she may be able to immediately file action to contest the taking of the property, and asking for a temporary block their selling of the property until the issue is revolved by the court.

Message 4 of 4
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