Legal Question in Credit and Debt Law in Wisconsin

Yes, they can, but they probably would not take your secured car, but would instead administratively garnishee your wages, since they would realize little by selling your car, only to have the proceeds go to your secured lender. Most wage garnishments are at the rate of 25% of net wages. Student loan procedures are extremely complex, so you should immediately hire an experienced bankruptcy lawyer who also has experience in negotiating student loans. They are potentially dischargeable in bankruptcy if the court finds that they are causing you undue hardship, after you start an adversary lawsuit against the lender in bankruptcy court. This is a very difficult standard to meet, so you should attempt everything else first, including the various percentage of income repayment plans which student loan lenders often will grant provided that your loan has not yet gone into default (or if your default status can be cured). Undue hardship means a hardship not of your own making, such as medical disability, and ou would need to approach eligibility for social security disability in order to qualify. Please be aware that my responses to you in the public web forum do not make me your attorney and that I am not representing you or taking any action on your case. Instead, these answers are intended for public educational use only and may also contain lawyer advertising materials. Regardless of this, however, you are still welcome to contact me during business hours at my in Racine if you still have questions, or see me on the web at www.jayknixonlaw.com. For a list of my other answers on Law Guru, please see my profile link here at lawguru.com.