Can I safely Buy a car?

by Bill
(Duval county, Jacksonville, Fl.)

I live in Florida and I have several old credit cards that I defaulted on. I recently received a settlement from insurance from an auto theft and I want to purchase a new vehicle. I was told that the debt collectors could get a judgment against me and take the auto as well as my social security and retirement income.

I had a stroke last year and my doctor said I need to relieve the stress.Any assistance you could give me would help immensely. My total debt is about $15,000.

Comments for Can I safely Buy a car?

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Aug 02, 2010
buying a car / credit card debt
by: Gerri


First of all, your Social Security and retirement income are likely protected from creditors. You'll need to double check that with an attorney (see below) but in most cases creditors can't do directly after those funds.

However, you are wise to get advice before you pay cash for a car or decide how to spend this settlement. If you pay cash for the vehicle it may complicate your situation.

There are too many variables here for us to tell you which way to go. We would really encourage you to set up a a free consultation with a bankruptcy attorney who will help you understand what property (not just real estate, it also includes income) is exempt from creditors and what may be at risk if you continue to be unable to pay your debts.

In addition, there may be a middle ground here. Maybe you can buy an older but reliable used car using the funds for a down payment, then use the rest of the money you receive to negotiate settlements on your debts. You may want to listen to our debt settlement podcast for more information on how that works.

But please go ahead and get advice from an attorney. Consulting one is free and confidential, and I think it will go a long way to relieving some of the stress that you are experiencing.

Feel free to let us know how things are going by using the comments link below. Hang in there!

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