Legal Question in Credit and Debt Law in California
A car that I co-signed on that has been repossessed. I have several questions. Can my wages or savings be garnished? Because I own a home and may sell in the next two years, can a lien be placed on the proceeds of the sale as well? I hope to retire in two years and would like to know if my retirement income is at risk.
1 Answer from Attorneys
The lender who repossessed the car must first sell it. Assuming that it sells for less than what is owed on it, then you owe a "deficiency." The lender can sue you for that. When the lender obtains a judgment, then the lender can garnish your wages, seize a bank account, and put a lien on your home. If your home is sold, and there is sufficient equity to cover the loans on the house plus your homestead exemption, the lender would be paid something.
Your retirement income is probably not at risk. This is normally exempt.
Two possible solutions include a bankruptcy and negotiating a settlement or acceptable payment arrangement with the lender.
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