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"How To Defend Yourself In Small Claims Court" Discussion

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Professional Q&As for "How To Defend Yourself In Small Claims Court"

Upsolve Community Member
2021-12-02

One other question...I have a debt from when I had my towing business a couple of years ago that I have resulted in the repossession of our tow truck...I did not see in the questionaire where to list business vehicles? I still have to dig out the debt holders stuff from storage and add it to my list of creditors...it's a biggie that I can't leave off!

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Upsolve Community Member
Were you a sole proprietor? Here's an article that might be helpful: https://upsolve.org/learn/differences-sole-proprietor-and-llc-in-personal-bankruptcy/  You might also find this article on small business and bankruptcy helpful: https://upsolve.org/learn/business-bankruptcy-chapter-13/

Upsolve Community Member
I had an EIN and formed an LLC for that business, which is closed down now...

Upsolve Community Member
but all the debt I incurred for this business was personal and not in the business name...

Upsolve Community Member
I had gotten start up loans and the truck loan in my name...

Upsolve Community Member
Jack's article is a great place to look- what to list for your business would generally depend on the type of business. You might also find it helpful to consider repossession here! https://upsolve.org/learn/car-repossession-101/

Upsolve Community Member
I'm not familiar with the questionnaire but I do know you can't get debt discharged unless it's listed. So if the truck is in your name and the bankruptcy is filed in your name it's a good idea to list it. That first link I posted had some LLC info.  If you want to keep your truck, this article might help you learn more about the vehicles and the bankruptcy process: https://upsolve.org/learn/can-keep-car-file-bankruptcy/

Upsolve Community Member
Thanks so much for your help Kimberly & Jacqueline!! 

Upsolve Community Member
2022-01-04

Medical emergency had a stroke and heart attack November 2020 been awaiting SSDI approval since February 2021 they are backed up had no income since March 2021 completely broke brain damage very sick paid 5 years and 10 months at 22% interest on my 2014 Corolla through Santander got it in 2016, it was a 2014, due to interest paid almost 6 years still have over 10k left and am 80 days past due and up for reposession and they won’t work with me, credit shot from the last year, no one to help all alone need help please I won’t be able to get another car with amount of SSDI monthly payments and only 80k miles on my car I need to pay it off then drive it for remainder of my life please help also my credit score plummeted from 770 to 510 in the last year due to medical emergency and SSDI holdup medical bills charged off small credit cards and loans screwed me up brain damage please help 2144047715 Rachel flock have no money negative overdrawn in my bank please help

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Upsolve Community Member
OK, Rachel... the first thing you need to do is take three deep breaths so you can focus. Nobody is going to call you from Upsolve --- but if you are under such stress that you need some mental health help ---- 1-800-273-TALK (8255).  This is a "Do It Yourself" service for filing Chapter 7 bankruptcy. If you would like info as to how you get started with Upsolve, where you are doing the work yourself, let me know. Please respond to this message. Thank you! :-)

Upsolve Community Member
Hi Rachel, disability is a tough road and my heart goes out to you. Medical problems can really turn a person's life upside down, and SSDI can be a slow process. Bankruptcy can help with medical bills. The article https://upsolve.org/learn/get-rid-of-medical-bills-in-bankruptcy/ has more information. It sounds like you're very worried about keeping your car. That will depend on different factors, but I recommend reading https://upsolve.org/learn/can-keep-car-file-bankruptcy/ to learn more about your options. If it's difficult for you to read or reading makes you tired, check out what accessibility options your phone or computer has to read aloud or narrate text. There are also extensions and apps that can help.  Sometimes it's hard to find community services to help, but you can call 211 to find out if the United Way has any community services available in your area to help you with your health care and financial needs. 

Upsolve Community Member
2021-12-16

In chapter 7 bankruptcy does the court take all the money from my checking account even if it a small amount? I do freelance work online and have a seperate business account under an LLC. Do I lose all the money in my business account too even if I need the money to keep my business running?

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Community Replies:

Upsolve Community Member
Hi John! The exemptions you're allowed for bankruptcy will depend on your state. You can read https://upsolve.org/learn/chapter-7-bankruptcy-exemptions/ for an introduction to exemptions. I think the Upsolve article https://upsolve.org/learn/keeping-a-checking-account-during-bankruptcy/ will answer some of your bank account questions. The Upsolve article https://upsolve.org/learn/differences-sole-proprietor-and-llc-in-personal-bankruptcy/ talks about self-employment and LLCs and bankruptcy, in case you're up for more reading. :) 

Upsolve Community Member
Jacqueline is right- please let us know if you have any other questions after reading those articles and doing any research of your own

Upsolve Community Member
Thanks for being here! 

Upsolve Community Member
2022-01-06

I have my car loan and credit card under the same credit union. If I attempt to reaffirm my car, world they (most likely) reaffirm my credit card as cross-collateralization as well?

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Community Replies:

Upsolve Community Member
Many credit unions utilize cross-collateralization language which result in loans you thought were unsecured to actually be secured obligations. They thus require a debtor to reaffirm on both loans in order to retain the secured collateral. You might find this blog post helpful. https://www.bondnbotes.com/2016/10/03/credit-union-bankruptcy

Upsolve Community Member
You may also want to consider filing a Chapter 13 bankruptcy which, in some cases, will allow you to simply pay the value of the car rather than the entire balance owed.

Upsolve Community Member
Hi Vanessa, this article from the Upsolve Learning Center: https://upsolve.org/learn/credit-unions-and-bankruptcy/ Perhaps this may be of assistance to you. Good luck! :-)

Upsolve Community Member
Vanessa, it will ultimately depend on the credit union's policies, but it is common to reaffirm both types of loans. The article Mark suggested will give you more insight on the topic. I did just notice the article https://upsolve.org/learn/car-payment-too-high/ says this "It is common for credit cards through a credit union to be secured by your car when you also have a car loan with the credit union. While credit cards are usually unsecured, this type of cross-collateralization effectively makes a credit card into a secured debt. Due to this cross-collateralization, credit unions often won't reaffirm a car loan unless the credit card is also reaffirmed. If the credit card balance is high enough, it may be best to surrender the car."

Upsolve Community Member
2021-11-11

I hand delivered my packet to court house and they stamped it but didn't give me a case #, will I receive it in the mail or email?

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Community Replies:

Upsolve Community Member
They should mail you something within a week. I mailed mine out middle of last week and I received my 309-A form in the mail yesterday with my case number and the information I need to continue. Good luck sir

Upsolve Community Member
Thanks for your helpful answer Douglas!! 

Upsolve Community Member
It depend, but usually something will be sent in the mail. You can also check PACER online with your name or SSN to find the case number, if you don't happen to receive anything by mail or email soon. 


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