Legal Question in Credit and Debt Law in California

Re: wage garnishing

legally speaking, any legitimate creditor has the right to get a court order demanding payment on delinquent amounts owed. with such a court order, a writ of execution can be obtained thereafter to garnish wages, levy bank accounts and/or place liens on real property until the amount owed is paid in full. however, alot of the time none of this may occur because its not economically feasible to go after a debtor who may not have the financial ability to pay, especially if the creditor has already repossessed the item of value for resale. so, it just varies from situation to situation. for peace of mind, you might want to have an attorney negotiate a favorable settlement here on your behalf in writing with the finance company. if you would like further assistance, contact us today.

Re: wage garnishing

In order to garnish your wages, the lender must first follow the proper legal steps to sell vehicle for a reasonable price. If they follow proper legal procedures and the still sell it for less than you owe, this is called a deficiency. In order to collect the deficiency, they must file a lawsuit against you and get a judgment. Only then can they start a wage garnishment.

If they do sue you, you have a couple of options. One option is to try to settle the case...maybe a lump sum payment or a repayment plan. You can also consider filing for bankruptcy if you have other debt to get rid of. Even with a judgment, they can't garnish more than 25% of your wages and the court could always order a reduced amount based on your income and expenses. Chances are that they couldn't garnish mucy with 5 kids an living paycheck to paycheck.

In order to properly advise you, you should consult a local attorney with more time to get into the specifics of your case.