Legal Question in Bankruptcy in Michigan

bankruptcy

If I file bankruptcy, can a garnishment for an auto loan be included in that? I had an automobile and then lost my job. The car blew a rod and had to be towed. The warranty department said that it was not a warranty issue that it was my negligence with the oil changes. Because I couldnt afford to get the car repaired and the auto repair place gave me 3 days to get the car removed from their facility but I didnt have a way to, they kept the car with a lien on it and the credit corporation that the loan was with garnished my wages. I barely have enough to survive on with the garnishment and would like to include that in a bankrupty.


Asked on 12/08/08, 12:23 pm

3 Answers from Attorneys
Kimberly Redd Redd Law, PLC

Re: bankruptcy

A bankruptcy will stop garnishments, but it typically doesn't get rid of liens. If you don't want the car, you can just file bankruptcy and the creditor can never contact you for any additional money. If you have any additional questions, feel free to contact me.

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Answered on 12/08/08, 12:52 pm
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: bankruptcy

Yes, not only CAN the garnishment be included, but it also must be included. The bankruptcy will stop all collection action against you, including garnishments.

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Answered on 12/08/08, 1:00 pm
Gregory Dodd Gregory L. Dodd

Re: bankruptcy

Yest. That is easy. It has to be included; you have to list all of your debts. If you file Chapter 7, if it is a periodic garnishment of a paycheck, the garnishment will end immediately when you file and notify your employer of the filing.

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Answered on 12/08/08, 2:16 pm


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