Question:

Can a bank garnish your wages for a car repo?

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I may have no choice but to let my car go back. If I do, can the bank garnish my wages?

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  1. Only if they sue you for what is called a "deficiency judgement". That means after the car is auctioned off you are still responsible for the remainder of it's value and they will most likely take you to court over that.  Once they obtain a court order then yes they can garnish you until it is paid off.


  2. They can, but only if they sue you first & get a judgment.  They can take up to 25% of your net pay.

  3. If they obtain a court order for you to pay, then yes they can.  If they take the car, they might let you re-finance the remainder of the loan.  Either way you have to pay what you owe.  If you have to lose your car you should try to sell it privately.  If the bank takes it, they put it up on auction and you won't get nearly as much as you would if you sold it.  Find out what your pay out amount is, and try to sell it for that amount.

  4. Auto finance is what I do for a living and a repossession without a bankruptcy is one of the worst things that can show on your credit.

    The lender will sell the vehicle at auction for less then it's worth and come after you for the difference plus all fees for towing, storage, reconditioning, auction, interest and anything else they can think of, this will amount to several thousand dollars and if you do not pay they can take you to court, get a judgment and at that point attach bank accounts, garnish wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.

    All of this will show on your credit for the next 7-years making it very hard to get any other type of loans without making massive down payments, paying huge fees and State maximum interest rates.

    You would be much better off selling the vehicle and taking out a personal loan to pay the difference this way your credit is saved.

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