Legal Question in Credit and Debt Law in Washington

Vehicle Loan

At the end of July, I lost my job. At that time The bank that I have my vehicle through granted myself a three month adjustment lowering my payments. I know have been employed once again but I am making about 60% less than what I was. Be that as it may I am now not able to make my normal payment based on my current salary. I have tried to work out a solution with my bank but they don't seem interested in doing so. Therefore I will most likely und up defaulting on the loan. My understanding is they will repossess the vehicle sellit put that amount towards the loan. At that point I will still owe the remaining amount. They will then get a judgemnet against myself for the remaining amount. If I can't pay. Can they garnish my wages and if so for the full amount? Is there any other legal ramifications of this whole senario.


Asked on 9/22/08, 7:17 pm

1 Answer from Attorneys
Katherine Owen

Re: Vehicle Loan

If you get a judgment against you, you can either set up a payment arrangement (if the creditor will accept it), pay the debt off in full, declare bankruptcy, or be subject to the creditor's attempts to execute on your property. Wage garnishment is one such method.

The creditor cannot take your whole paycheck; basically you can be garnished either 15% or 25% of your net income depending on whether you are head of household or not. A creditor can also execute on personal property, like a bank account, or put a lien on any real estate you own.

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Answered on 9/23/08, 10:10 am


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