Can a credit union garnish your wages for an unpaid signature loan? 21 Answers as of August 25, 2014

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Stephens Gourley & Bywater | David A. Stephens
Yes if it gets a judgment.
Answer Applies to: Nevada
Replied: 8/22/2014
Barnhart Law Office
Barnhart Law Office | Bruce C Barnhart
Yes, a credit union will have the right to garnish your wages. It must first file a lawsuit and obtain a judgment.
Answer Applies to: Nebraska
Replied: 8/21/2014
A creditor can garnish wages after beginning a law suit.
Answer Applies to: Minnesota
Replied: 8/21/2014
Law Office of William Stoddard | William Stoddard
Once they have a judgment against you, yes. They have to seek an order from the court that the debt is still owe. You have to be served so you know this is happening. Once they get a judgment, then they have all remedies they need to get paid. That includes garnishment.
Answer Applies to: Washington
Replied: 8/21/2014
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Before wages can be garnished, the credit union would have to file a collection lawsuit and obtain a money judgment against the borrower. Once that is done, the lender is free to file a garnishment to force payment of the obligation.
Answer Applies to: Colorado
Replied: 8/21/2014
    Law Office of Andrew Oostdyk
    Law Office of Andrew Oostdyk | Andrew Oostdyk
    In Texas, a creditor generally cannot garnish wages to recover a debt. But, the Credit Union does have remedies available to collect their loan. For example, if you have an account with a balance at the Credit Union, they can offset the balance of what is owed on the loan with the amount in the account. Also, if the Credit Union files a lawsuit, and is successful, an account at a different financial institution can be garnished and applied to the outstanding balance of the loan.
    Answer Applies to: Texas
    Replied: 8/21/2014
    Dickson Law Group, LLC
    Dickson Law Group, LLC | John P. Dickson
    Wage garnishment is one of three primary ways to enforce a judgment in Illinois, with the other two being the citation to discover assets and the non-wage garnishment. A prerequisite for wage garnishment is an enforceable judgment. If you have been sued, and if a judgment was entered against you, and if you received notice that the wage garnishment was to be filed, then the wage garnishment likely is valid. There are three ways out of this situation: (1) pay the judgment off, (2) if within thirty days of entry of a default judgment against you, attempt to vacate the judgment and fight it, or (3) bankruptcy. A consultation with an attorney will help you better understand your rights and options.
    Answer Applies to: Illinois
    Replied: 8/21/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    The answer assumes you are in California. The short answer is yes. After they sue and get a judgment from the court they can take that judgment to the employer and start garnishing wages up to the amount permitted by law.
    Answer Applies to: California
    Replied: 8/21/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Any lender can garnish your wages for an unpaid debt. In order to do a garnishment in Ohio, they have to go to court, get a judgment against you and an order of garnishment.
    Answer Applies to: Ohio
    Replied: 8/21/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Sure, any creditor that obtains a court judgment can garnish your wages. But it is worse than that when the creditor is your credit union. The CU has the right to just grab any money in your account for a debt owed to them, and it also has the right to add any debt you owe them to any other debt you owe them. So if you have a car loan or a mortgage with the credit union, you won't get a clear title until you pay off both the original financing and the signature loan. Called cross collateralization look it up.
    Answer Applies to: Nevada
    Replied: 8/21/2014
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    Only if it obtains a judgment first. Garnishments and levies require a valid judgment to be issued. If the Credit Union sues you, or you receive a summons and complaint, don't ignore it. You have ONLY 30 days to respond or the case will be decided without your participation.
    Answer Applies to: California
    Replied: 8/25/2014
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