Garnishing wages? For a car repossession at 16?

Question

When I was 16 (not knowing what credit was and how it could affect me), I signed a contract with a bank for a loan with a co-signer who also got a loan for a car. The car got repo'd and now at the age of 25, a judgement was entered on me to start garnishing my wages. Is this right? Shouldn't they have gone after the co-signer instead? After judgment was entered, how would I go about fighting it? This is in the State of Missouri.

Answer 1

Your only way out of this will be on a technicality (if there is one). More info is needed from you. You many need to consult with an attorney.

Lets start by clearing up some bad information you seem to have received.

Car loans (secured loans) are considered written contracts. In Missouri, those statute of limitations run for 10 years. Don't look for help there.

You can not be sued for a debt if you are a minor (under 18). However, if you sign a contract as a minor, and continue to gain from that contract after you become an adult, they can sue you. Therefore, lets say at 16 you buy the car, then after you turn 18 you quit paying. You have gained from this agreement because you are still using the car. They have the legal right to sue you. So you can't hide by claiming you were a minor when you signed the contract.

As for who they should go after, you or the co-signer..that's up to the creditor. If they think they will have an easier time going after your co-signer that's where they will go after. Obviously, since you have a job and they can easily garnish your wages, you are a better target.

For now, you can try contacting the court and filing a "motion for installment payments". This is where show the judge your finances, and ask that the court set a fixed payment that you can afford (as opposed to paying 25% of your wages).

Answer 2

You need to get a loan and pay for your debt, yes they can and will proceed with doing that, or you can file bankruptcy to stop it but unless you have alot of other unsecure debt I wouldn't advise it, This is why you don't do that when you are young. yes, they can still go after the co signer as well if they never get anything from you they eventually will but a judgement is worse than a bankruptcy and stays on your credit forever, even though they say it won't they pass it on to a new collection bureau, and then it becomes a new debt each time they do it, and a judgement can not be wiped away in bankruptcy, so you have to pay it BEFORE it goes to judgement. You will effect your ability to get credit for a long time, alot of rental units won't rent to you, you may not be able to buy a house, or another car or get another loan for many years. IT is NOT worth it, find a way to pay it before it turns into a judgement and they add court costs, collection fees and all that to judgements. you can get a loan to pay it off or work out a payment plan with the lender that you and they can live with and stick to it. You might also seek Legal advice since you were a minor.

Answer 3

They normally go after the person that the car is in, if you have no income they will then go after the co-signer. What I am not understanding how did they allow a 16 year old put the car in there name and not the person of legal age to purchase a car. They waited 10 years before the would enter a judgment that is against the law, I thought after seven years it is too late. You really need to seek out a lawyer to check into that for you, because that bill is actually 10years old. You need someone good and know the laws in Missouri for sure, I don't think that is legal. Good Luck

Answer 4

You are still responsible for the loan no matter how long ago. You have a legal and moral obligation to pay this.
You should feel bad for screwing your co-signer like that, that is why you should NEVER co-sign a loan.
You should just pay the loan and learn from this mistake. I would also tell the co-signer "Sorry for messing your credit up also"
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Answer 5

I don't know the laws in the state MO, but unless you were an emancipated minor I find it strange that they would enter into a legal contract with you even with a co-signer.

Nowadays it is not uncommon for a company to hold over a debt and bring it in judgment when the minor becomes an adult if they co-signer reneged. Since most consumers are not wise to there rights you might want to check with your credit bureaus to see if you can have this debt erased or at least find out what your options are.

Answer 6

I would contact an attorney. How did they let you sign for a car at 16. You have to be 18 to get a credit card, unless it is in your parents name. You also must be a certain age to get a bank account. This sounds illegal. I think the car company should be counter sued for putting yuour throught this, and the co-signer should be in trouble as well. If that failed, then I would contact the media, and tell them I was scamed!

Answer 7

No idea as I am in the uk. However I thought that a 16 year old is still counted as a minor, and therefore you can not make a legal aggreement with one. I would get a lawyer to find out where you stand.

On an ethical view, would you not like to help out the person who co signed, as after all they were kind enough to help you out.

Any ways have a good new year. x

Answer 8

I don't know how it is in Missouri, but in NY You can't get a bank loan untill you are 18 (legal age to be bound by a contract). So if you were 16 you can't be held responsible for a debt because you weren't old enough to agree to a contract legally. The best way to fight this is to get a lawyer, and provide him/her with anything they ask for. It will take forever, but you will eventually get it resolved.

Answer 9

You should contact an attorney. Under the age of 18, you cannot legally sign a contract. Any contract you do sign is invalid.