Legal Question in Credit and Debt Law in Florida

Re: wage garnishment

After the repossession of an automobile, if there is still money owed on the debt (for example: you were upside down on the auto loan), then the next step in the collection process is for the lender to bring a civil lawsuit for the deficiency.

Wage or Bank Account Garnishment for debts can generally only come after the lawsuit is over. First you are served with a copy of the lawsuit, then you have 20 days to respond or a court date will be assigned. If you fail to respond/appear, or admit to the debt, then a Judgment will be entered. Otherwise, the matter will be set for trial and the creditor will have to prove its case. Sometimes they can, sometimes they can't. Either way, you can always try to negotiate a voluntary repayment before garnishment.

As a final note, there are several statutory exemptions to garnishment. So, just because a creditor seeks garnishment, doesn't mean that it is a sure thing.

For more information about debtor's rights and garnishments, you can check out the Credit section of our website at www.LaBellaLaw.com.