Question

Can a car loan company garnish wages on my repo car?

Can the car place where I got my car from put a garnish on my wages because they repoed my car or do they only put a judgement on me? I do want to pay back the loan in time. I have every right to pay my loan back I just got myself in a mess and fell to far behind in my payments, thats why they took my car.

7 years ago - 6 answers

Best Answer

Chosen by Asker

They can go after you for the deficiency balance.
Though they must follow the repo laws for your state in order to legally collect on the deficiency.
(but, the ball would be in your court to defend yourself if they failed to follow the proper procedures. And also to defend yourself if the repo has passed the collection SOL, which is 4 years from the date the vehicle was sold creating the deficiency)

What they can do depends on if they file suit and win and also what your states exemption statutes allow, not all states allow wage garnishment.

++++++

Joseph --
Before you make claims that someone is wrong in their answer, you might want to do your homework.
Read the UCC § 9.506 for the deficiency notices (which is also mirrored in many states RISA and MVISA statutes)
A deficiency can not be claimed unless all of the required notices were properly and timely given, and all of the allowable redemption and cure time limits were adhered to

And read Article 2 of the UCC for the SOL period

case law -- FORD MOTOR CREDIT COMPANY v. GILBERTO ARCE

+++

I don't see anywhere in the OP's question where they actually do have a judgment against her/him - so as far as any answerer on here knows - the deal is not done

.
There are a couple dozen states that do have cure (redemption) statutes that legally have to be followed

7 years ago

Other Answers

They can garnish your wages but if you contact and tell them your situation and that you want to pay the bill ,they will probably let you make arrangements to make payments. Good Luck.

by BERT - 7 years ago

They can get a judgement then if they choose they can get a garnishment but I work in credit reporting and I have never seen this done. They have to set a seperate court date for the garnishment and many times its more work than its worth. The best thing to do is call them and work out payment arrangements. Something you can afford and you know you will be able to pay. As long as you are making payments (no matter how small) they can not get a judgement on you.

by Kristin - 7 years ago

Yes. It is legal and the other poster is legally incorrect when states that it is not legal. After a car repo. There is a Deficiency Judgment or Deficiency Balance and can result in a wage garnishment.

You have the right to get the car repo back by paying the overdue amount, plus any fines and costs. These can be rather steep. If you can't or won't pay, the repossessor must give you 15 days' notice of the auction. You can bid on your own car.

If they get less than you owe as the winning bid (which is usually the case), you'll owe the rest. That is the deficiency balance referred to above. It usually is somewhere between $3,000 and $10,000 that you still owe on a car you don't have any more. Most people don't have that kind of money, so they usually sue you in a lawsuit. You owe it, so they usually win. That means they get a judgment against you. This turns into a wage garnishment where they take part of your paycheck.

by Joseph H - 7 years ago

The only way that they can garnish your wages is if they take you to court and win a judgment first.

Then and only then they can attach bank accounts, garnish your wages (if your State allows it) and file liens on any property that you may own.

Source(s)

by spifiman1 - 7 years ago

The purpose of obtaining judgment is that they can legally garnish wages, attach assets, file liens and bank levys.

Once they have the judgment, you can either call them and make reasonable arrangements that they agree on or they will refuse your offer and continue "enforcing judgment".

Oh and that guy that said you can get your car repo back now...no you cant. The 15 day stuff is BS too at this point. Because you were served a summons and you were supposed to have filed a response and you probably didnt did you? They got whats called a default judgment. And if you did file a response, you lost the case and they got a judgment.

Either way, the deal is done. The judgment exists and there are no laws that can get you out of it now. Unless you want to appeal the judgment which you will lose.

Sorry buddy. Dont bother getting an attorney now either, you would only be wasting your money at this point.

If you have any questions email me Smile4Cobra@yahoo.com

Good Luck

Source(s)

by smile4cobra - 7 years ago