Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Thank you for your question, perhaps you could clarify a couple questions for me. Was there deficiency between how much was owing on the vehicle and how much it was worth at the time you turned it back in? What state are you in?
Thank you for your question.
After selling the vehicle, chances are your lender had the ability to come after you for the difference between what you owed on the vehicle and what it sold for. However, you should have been notified that this action was being taken against you. The amount can include the deficiency, reasonable attorney's fees and/or legal fees, interest and penalty.
If you feel that your wages are being garnished in error, or that you were not given the proper notice, you may choose to reopen the case and try to have the judgment vacated. However, chances are they would not have been able to get the judgment against you without showing the court notice that they went through the proper channels. Nonetheless, you may consider consulting with a local consumer attorney about filing a motion to vacate the judgment (if they feel appropriate grounds exist) and stopping the garnishment until you have had a chance to be heard on whether you really owe.
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