Cleburne, TX Bankruptcy Law Firms & Lawyers

If the persons who lent you the money to purchase the trailer hold a lien against it then they are protected. You must continue to make the payment to them or they have the right to seize the trailer as payment. The balance would be discharged. If they do not hold a lien then your only option is to claim the trailer exempt under the tools of the trade exemption, which has a $10,000 limit.

If you are sued in a civil court for a debt you need to file an answer or else a default judgment will occur. You are not arrested or jailed for failure to file an answer or appear in lieu of an answer. Once there is a judgment, however, the judge may order you to appear for an examination of your assets. That type of court order can result in a warrant for your arrest in you fail to appear. Consult a local attorney for advice in this matter. This is applicable to California law. Illinois law may differ.

If the time for doing so has not already expired, you could file an appeal in the lawsuit where the judgment was rendered. You would need to assert some reason why it's wrong and point out what mistake the trial court made. If the time already has run out or if the trial court did not make some particular mistake, then I don't see any way for you to dispute the judgment at this point. You also asked whether a bankruptcy can get rid of the judgment. The answer is yes, a bankruptcy could wipe it out (which is different than disputing it).