Legal Question in Credit and Debt Law in Florida

Re: Wage Garnishment

If the boat is repossessed, the bank can seek to obtain a writ of garnishment for your salary for any losses incurred including unpaid interest, difference in value from the amount received upon the repossession/foreclosure (sherriff's) sale, foreclosure expenses, etc. They can also seek to garnish bank accounts or have a writ of attachment on any assets. There is an exemption from garnishment based on a formula including the minimum wage for a head of household.

If the boat is like new, it is often wise to try and find a responsible party who is willing to take over your payments. Alternatively, you may wish to talk with a representative of the bank, explain your problem and see if you can voluntarily turn the boat back to them in lieu of a foreclosure/repossession. Based on your medical problems, they may agree.

As in any legal problem, it would be wise to meet with an attorney to discuss the particulars of your problem which are not set forth in any detail herein and thus my answer deals in general issues.

Scott R. Jay, Esq. 305-249-8000

Re: Wage Garnishment

In the situation of a repossession, you can be held liable for the balance due under your contract with the dealer/manufacturer. Often, when a car/boat is repossessed, the lender/dealer/manufacturer will sell or auction the boat to pay off as much as the amount that is owed. This firesale usually results in a deficiency and you would still owe money under the contract. Afterwards, the dealer/manufacturer would seek to obtain the balance due from you.

Based on the foregoing, the best option in this situation is to either re-finance the boat purchase or sell the boat on your own. By selling the boat on your own, you can generally obtain more money for the boat as compared to what would be obtained during a repo sale.

As for garnishment, a party in Florida is entitled to an exemption to garnishment if the party is the head of a household that contains minor children. This exemption must be raised as a defense during the garnishment proceedings or you would risk the possibility of losing the exemption.

Feel free to contact me (305-373-5313) if you should have any additional questions.