Full question:
I currently am paying on a loan for my truck. Recently, due to some unfortunate events, I am unable to afford the extremely high payments. I have exhausted all possible solutions other than returning the car as a voluntary repossession. I know that once I do this, there will be a sizable balance I will owe on the loan. I have no problem making a regular payment to take care of the balance, but I cannot afford anywhere near the original loan payment. Does the Lien-holder have the ability to garnish my wages even if I am making regular payments each month? If so, is there any legal recourse I have to avoid garnishment?
- Category: Debts and Credit
- Subcategory: Garnishment
- Date:
- State: Wisconsin
Answer:
Yes, the lienholder may be able to garnish your wages if you fail to meet contractual payments. You might:
1. Repay the debt (make a deal directly with the creditor);
2. File a proposal to creditors; or
3. File for bankruptcy.
Unfortunately, once a creditor has instituted garnishment proceedings, the garnishment is difficult to stop without filing for bankruptcy. Many jurisidictions offer certain property exemptions to a debtor which will protect the property from the collection efforts of the creditor. In order to claim the exemption, the debtor must file certain paperwork with the court and creditor notifying both of the debtor's intent to exercise the exemption.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
