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In most states, yes, if they have a judgment. Judgments are enforceable for ten years with a potential ten year extension (in New York, judgments are enforceable for ten years from the date of judgment).
A creditor cannot garnish your wages unless they file a lawsuit and obtained a judgment against you. The time deadline to file a lawsuit will vary by state.
ONLY if they have a judgment for the balance owed on the loan
Time to GarnishmentThe creditor first has to get permission from the courts to do so. It takes up to two years for the process. But it could take as little as six months. In Texas they can't garnish your wages at all.True, in Texas creditor's can not garnish your wages, but once the money is deposited in to your account, is not wages anymore and yes only after a judgment creditor's can freeze your bank accounts! If you are being sued, contact an attorney and and get legal advice. Filing for Bankruptcy will stopped everything.
YES
In Texas, they take you to court on a judgment in order to collect. Statutes of limitations on debt collection in Texas is four years. Debtors cannot garnish any wages.
I've had an unemployment overpayment in Iowa for nearly 10 years and have never had any of my wages garnished.
Short answer. Yes. They must first sue you and win a judgment in small claims court. Once they have done that, they can garnish your wages (some exceptions apply) they can seize bank account balances and more. Your best bet is to try to negotiate a repayment plan with them before they file suit.
yes it is an option for them
You need to check with you local statutes under contracts for the statute of limitations most only go for two years
It depends on the state you live in. It is probably nearing the time limit and is why they did something now.
After the mobile home is repossessed they will try to sell it. You will be liable for the difference of what you owed less what they got for it. They can sue you for that amount and if they win a judgment against you they can place liens on property or your person, sieze bank accounts and garnish wages. Wages cannot be garnished in TX, PA, NC, or SC. No debt EVER just 'goes away' and its presence or absence from your credit reports does not alter attempts to collect a debt.