How much can the bank garnish my wages for a car loan? 4 Answers as of January 06, 2012

I recently received a garnishment on my pay. I did not receive any prior notice. The first time I knew of it was when I received my paycheck. My HR Department said they had sent me some paperwork a week prior, but I did not receive it. I asked them to send it again. The situation is that I financed a vehicle through a bank in 2005. We purchased the vehicle, used, for about $15,000. The vehicle was repossessed after about 2 years of $500 monthly payments. The bank has garnished my wages for $104 per week for a total of $22,400. I realize I may be responsible for the difference between what the vehicle is worth and what was left on the loan, but this amount seems extreme.

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Neighborhood Law Office, P.C.
Neighborhood Law Office, P.C. | Jim Underhill
This is probably not your only financial problem. You should consult with an experienced attorney about bankruptcy. The odds are that you cannot undo the judgment which they are basing their garnishment upon. They can also garnish your bank accounts. A bankruptcy may be a cheap way to resolve this issue, as well as other financial issues you may have. Like many attorneys we will sit down and review the bills, the letters and your situation with you without charge. Your best bet is to find a good lawyer who provides advice on this kind of issue on a regular basis and review your specific facts; the lawyer will be able to give you an analysis of the law and your options.
Answer Applies to: Colorado
Replied: 1/6/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
They can garnish 10% of your monthly gross income, however if you qualify for a chapter 7 bankruptcy, the garnishment will stop upon filing and you will no longer be responsible for the remaining debt.
Answer Applies to: New York
Replied: 1/5/2012
Canty Law Firm
Canty Law Firm | Timothy Canty
Lenders typically auction repossessed vehicles and receive far less than the actual value. Under the terms of your loan, you are required to pay the difference. The only way to stop the garnishment is to quit your job (not recommended) or file a bankruptcy.
Answer Applies to: Colorado
Replied: 1/5/2012
Jakob-Barnes Law Firm, LLC
Jakob-Barnes Law Firm, LLC | Jennifer Jakob-Barnes
25% of your wages can be garnished.
Answer Applies to: Georgia
Replied: 1/5/2012
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