Does the Lien-holder have the ability to garnish my wages even if I am making regular payments each month?
Full Question:
I currently am paying on a loan for my truck. Recently, due to some unfortunate events, I am unable to afford the extremely high payments. I have exhausted all possible solutions other than returning the car as a voluntary repossession. I know that once I do this, there will be a sizable balance I will owe on the loan. I have no problem making a regular payment to take care of the balance, but I cannot afford anywhere near the original loan payment. Does the Lien-holder have the ability to garnish my wages even if I am making regular payments each month? If so, is there any legal recourse I have to avoid garnishment?
05/31/2007 |
Category: Debts and Cr... ยป Garnishment |
State: Wisconsin |
#6073
Answer:
Yes, the lienholder may be able to garnish your wages if you fail to meet contractual payments. You might:
1. Repay the debt (make a deal directly with the creditor);
2. File a proposal to creditors; or
3. File for bankruptcy.
Unfortunately, once a creditor has instituted garnishment proceedings, the garnishment is difficult to stop without filing for bankruptcy. Many jurisidictions offer certain property exemptions to a debtor which will protect the property from the collection efforts of the creditor. In order to claim the exemption, the debtor must file certain paperwork with the court and creditor notifying both of the debtor's intent to exercise the exemption.
