What happens is this, the vehicle gets repo'd. You still owe the deficiency after the vehicle is remarketed. The bank will take you to court for the deficiency. If you do not pay the deficiency if you are ruled against, they may garnish wages by court order. It takes legal action for wages to be garnished.
Yes. After the vehicle is repossessed it is sold at auction, usually not for very much money. The sales amount is applied to the loan balance then the borrower is still responsible for the rest of the money. If it isn't paid, the courts will often allow the lending institution to garnish wages to get payment. It's usually best to just pay the debt as promised.
When you enter in a legal contract to pay and you default it is the creditors right to use all legal means to collect the unpaid balance.
Sometimes the collateral is lost, destroyed or its value is less than the cost of repossession. State laws and regulations are different but I know of no rule that requires repossession prior to presuing the collection process. Garnishments are by court order to satisfy a judgment that has been granted by a court.
Creditors are notified by summons of pending court action.
Failing to appear results in a judgment for the plaintiff.
No, they cannot garnish you wages if you reside in NC. Only the IRS, state and local tax authority can garnish your wages. If you move to a garnishment state garnishment proceedings may be taken against you. Only a civil judgment may be filed but that would be at the creditor's discretion.
Typically, one the car has been repossessed, it will have a condition report done on it by the repossession company who will then send it to the company that assigned the account. The credit company will determine what to do at that point. If it is worth it for them to have the vehicle go to auction, they will have it transported to the auction company where it will be sold. If the vehicle is sold for more than what you owed (this includes all the fees that get added to the account, i.e., repo fees, transport fees, admin fees, etc.) the credit company has to give you the balance. If, however, it is sold for less than what you owe (more often the case), you are responsible for the remaining balance. Yes, they can take you to court for that balance but most of the time it is written off by the credit company and it remains on your credit as a repo.
Yes, the two issues have nothing to do with each other.
Yes. Once they sell your car after ropossession, they can garnish your wages, for the rest of the balance owed.
No, not directly. But your bank account can be levied by a judgment creditor and any monies including tax refunds can be seized.
You do not owe money for a car if it has been repossessed, so your wages can't be garnished for that reason.
if my wages are being garnished can they still take my income tax check?
Yes
READ your contract.
YES.
check this site
No In Texas your wages can be garnished by the IRS or Child Support only
Yes, if there was a deficiency balance owing after the car was sold at auction. Your creditor would have to sue you and obtain judgment in order to garnish your wages.
No
No not in the state of NC - only for child support and taxes. Wanda Improve Credit, LLC
yes
Yes it could