Legal Question in Credit and Debt Law in Maryland

Re: Garnishment of Wages

If your employer is subject to service of process in MD, they may be able to garnish under MD law. Otherwise, the question is whether PA allows wage garnishments. Most states do. Bit they can still garnish bank accounts, levy on assets, etc., so you may want to consult a lawyer about what you can do about this.

Re: Garnishment of Wages

Your wages cannot be garnished until the creditor obtains a judgment against you. This can take a long time. Sometimes (but rarely) the creditor doesn't do anything if the car sells at auction for enough to substantially cover the amount of money owed on it. If the creditor files a lawsuit in Pennsylvania, then Pennsylvania has to record the judgment here (enrolling the judgment) in Maryland in order to act upon it. Your wages can be garnished if the judgment is enrolled. Does the lender know you have moved? If not, and you are sued in Pennsylvania, it is possible you will not receive notice of the lawsuit or the judgment. If you are in a different position now, and you can afford to keep the car, and it has not yet been sold, you could get it back if a Chapter 13 bankruptcy is filed. If all else fails, and the creditor takes action and you are unable to pay, you may wish to consider a Chapter 7 bankruptcy. Please feel free to contact me if you require any further information.

Re: Garnishment of Wages

If the creditor is not able to get all of the money owed after the vehicle is sold (which is a likely scenario if you haven't had the vehicle for very long), it can sue you for the difference. If the difference is more than $25,000, they will have to sue you in Circuit Court. That can take nearly a year before they obtain a judgment. If the difference is less than $25,000, they can sue you in District Court. That is a much quicker proceeding and can take as little as three months to obtain a judgment. Ater the judgment is entered, they can begin to garnish not only your wages but easily make the judgment into a lien against your home.

I doubt that they will take you to court without first giving you an opportunity to pay the difference. You may be able to make an arrangement to pay over several months. Unless you have other substantial debts, though, I would not recommend bankruptcy.

Best of luck with getting this straightened out.