Garnishment of payroll check

by Diane

We have an account with American General. One of our cars is our collateral. We are making payments every month but are $300 short of being current. We received a letter from them threatening to take further action if we don't pay the $300 within 7 days. Can they garnish our check for that?

Comments for Garnishment of payroll check

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Oct 13, 2010
garnishing wages for past due debt
by: Gerri


In most cases where consumer debts are involved, a creditor must first take you to court and obtain a judgment before garnishing your wages. Has this creditor threatened otherwise?

However, since this is a secured loan, it is possible that your vehicle could be at risk of repossession if you fall behind on the loan.

The collector your talking with won't work with you, try to find a supervisor or someone else who will help you find a way to get caught up on this loan. It also wouldn't be a bad idea for you toat least talk with bankruptcy attorney who can help you understand what they can and cannot do if you can't keep up on your loans.

My guess is your finances were already somewhat shaky before you obtain this loan, and now you are a risk of ending up in an even worse situation if you can't get caught up. The attorney can help you evaluate your options here.

We hope this helps!

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