Credit and Debit Cards
Debt Collection
Income Garnishment

Can creditors garnish wages on a secured debt?


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Answered 2006-08-29 17:10:57

The long and short of it is--Yes. You signed a promissory note--you promised to pay and you haven't.


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Yes, wages can be garnished for consumer debt. The creditor would first have to sue you and get a judgement, then ask the court to garnish your wages. If the debt is secured, like a home or car they will likely just foreclose or repossess.

A Collection Agency that "owns your debt" can not garnish any wages. Assume that the collection agency in their efforts to collect the debt for their client, sues the debtor and then provoke that the Court works an arrangement to pay the debt, if the arrangement includes garnishment of wages then, the Court can garnish salaries. And there is laws to garnish wages that apply to every state.

The lender may garnish your wages for a judgment against a debt in Illinois, even after repossession.

A persons wages are garnished when they owe a debt. The debt collector had to go to court and a judge had to issue a garnishment.

There is no such thing as unsecured debt. There is debt that is not secured by collateral. There is debt that is secured by your signature on a contract. And, yes, if the creditor has obtained a judgment against you for credit card debt, they may serve your employer with an order of garnishee and secure up to 25% of your paycheck per pay period.

North and South Caroline, Texas and Pennsylvania. These 4 states can not garnish for debt collection.

They cannot collect unless they prove: 1. the debt is valid. 2. that they have authority to garnish the wages on behalf of those owed.

Yes, they can. I do know of a law firm that helps delay trials and settle out of court, let me know if you want to know about them.

If you owe a debt to a bank they can seek a petition from the court to garnish your wages.

A creditor can garnish however much the court has given them permission to garnish. The court decides this depending on the kind of debt owed as well as the willingness of the defendant to pay the debt. If it is a debt for owed child support, for example, a huge percentage of the wages can be garnished.

No...they do not have the right to garnish wages unless you signed a consent form agreeing to such.

Yes, after they sue and receive a judgment they can garnish wages up to 25% of the person's take home pay.

No, Wisconsin will not garnish a spouses wages to satisfy a credit card debt. Credit cards do not generally seek garnishments unless the amount is very large.

Yes. A creditor can sue for a debt and if they get a judgment they can use the judgment to garnish the debtor's wages.

There must have been a judgment obtained and then they can act on the judgment and attach wages.

The statute of limitations is based on age of last activity on the account, not how old the debt is. If you have paid on it or even promised to pay, they can garnish your wages or issue a lien on your home.

Yes, a finance company from Georgia can garnish wages even if the person lives and works in South Carolina. If the company got a judgement in court, they can garnish the wages in any state.

Until the debt is paid or until the judgment expires.

Yes if you signed a wage garnish when buying the car. If you didn't they may be able to but the courts will have to decide.

A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.

Chapter 7 bankruptcy protects you from creditors and sells your non secured assets to pay the creditors that you owe. If you do not own an assets, you will not have to pay the creditors and the debt will be forgiven.

First off...unsecured debt is clearly what the process is for as a secured debt creditor generally doesn't need to use garnishment for collection as they simply take the asset they have the debt secured by. Garnishments are generally allowed for debts you are failing to pay as you swore and agreed you would. There is a process to follow that leads up to a garnishment being allowed, but essentially, if you won't pay your obligations - it is one of many ways that can be used by those you owe to get what they legally are due and you owe. Getting an attachment to property - essentially having a court agree to make the loan a secured loan to something - and then seizing and selling that item is another.

If you default on a credit card, the first thing that will happen is they will report you to the consumer credit agencies. They may sell your account to a collection agency or garnish your wages. If it is a secured debt, they will take back your property.

Only if you are sued for the debt. First the RV is repossessed. Then you will get collection notices in the mail. If you are going to be sued, you will get notice of that too. If you are sued, the judge can award the creditor a judgment that allows them to garnish your wages.

Yes. Most of the time, it will undergo to some legal process or even a court order.

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