My pay is being garnished for a student loan.Now the bank is too because of a auto loan.Is this legal?

Question

I get garnished for 500.00 a month.My car was reposed and I am already being garnished for a student loan 160.00 every two weeks.Now the bank that financed the car is garnishing my 100.00 every pay period too.Their garnishment is 10 percent,making this 25 percent of my take home pay being gone.Can two garnishments take place at the same time.I called my pay roll and she said that this was court ordered.I even called the banks lawyer and he stated only one garnishment at a time.I don't feel that I should have to pay back the bank because I no longer have the vehicle.They stated that I owe the remaining balance.What should I do.I don't wanna file another bankrupcy because the dept is only 15 thousand total.I did hold on to the vehicle for 5 months without paying on it because I had to look for a job.

Answer 1

Do you have copies of the garnishment paperwork? Yes, it is legal for them to garnish your check and it is legal to have more than one garnishment. However, there is a limitation on the garnishment amount... Usually it is up to 25% of your disposable earnings; however it varies within state/federal laws. You should reference the paperwork for the garnishments to see what the maximum percentage was indicated.

Answer 2

Apparently someone needs to be kind enough to tell you the truth. You are a self-centered irresponsible little brat! You are totally out of control. You already went through one bankruptcy, then bought a new car on credit. I think you should be completely scared of yourself...your track record for making good financial decisions is horrible. New cars are not worth the hassle you are living with, better to pay cash for a beater-mobile than to live through the nightmare you brought on to yourself. I'm sorry that you lost your job. I know that's not a fun place to be, but you really needed to get several temp jobs to carry you through the 5 months. Apparently you decided that you were too good for that, so you just quit making the car payments.

I hope this is the last wake-up call you need to get your life straight and realize that you are the victim of your own self-indulgence. For most of us, money is limited and only you can make smart decisions for yourself. If you find my comments upsetting and unsettling then GOOD, maybe there is hope.

By Federal Law your wages can be garnished up to 25% of your take home pay. There is a restriction that the same creditor cannot run multiple garnishments, however this does not prevent 2 different creditors from running garnishments at the same time. However the grand total of all garnishments cannot exceed 25% (unless you're an extremely high-income earner).

As far as your feeling that you should not have to pay back the bank because your vehicle is repossessed is just plain wrong. You are legally and morally obligated to pay the whole amount. You probably could have paid cash for an older used car, but chose to purchase a newer car instead. New, and newer cars drop in value at an extreme rate, and you undoubtedly were upside down on the loan which is why the lender is coming after you with garnishments.

Get your act together, and start living within your means.

Answer 3

You should take a look at the options you can find at: HTTP://HELP.CREDIT-SOLUTIONS.INFO

RE My pay is being garnished for a student loan.Now the bank is too because of a auto loan.Is this legal?

I get garnished for 500.00 a month.My car was reposed and I am already being garnished for a student loan 160.00 every two weeks.Now the bank that financed the car is garnishing my 100.00 every pay period too.Their garnishment is 10 percent,making this 25 percent of my take home pay being gone.Can two garnishments take place at the same time.I called my pay roll and she said that this was court ordered.I even called the banks lawyer and he stated only one garnishment at a time.I don't feel that I should have to pay back the bank because I no longer have the vehicle.They stated that I owe the remaining balance.What should I do.I don't wanna file another bankrupcy because the dept is only 15 thousand total.I did hold on to the vehicle for 5 months without paying on it because I had to look for a job.

Answer 4

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Answer 5

Did you go before a judge? when you were summoned to court did you show up. That is the most important thing you can do. If you failed to show up then you were considered at fault and basically anything goes. Also the car should have been sold and you are liable for the balance of the car even if you turned it in. You should call the court and find out when they are going to be reviewing the garnishment, every so many months they have to re present it to the court. What ever you do go to court. I wish I knew of a solution since I am not an attorney I am clueless hopefully someone one here will be able to give you more detail.
Kourtnie Donihoo
The E.D.A. Group

Answer 6

well if the student loans were gauranteed by the government then filing bankruptcy will do you no good. As for two garnishments, it all depends on state law and odds are yes they can do it. But long story short you had loans you didn't pay. Did you even try to deferr the student loans? People do it all the time sometimes for over ten years.
Basically it is legal and they will be collecting it every week including any tax refund.

Answer 7

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RE:My pay is being garnished for a student loan.Now the bank is too because of a auto loan.Is this legal?

Answer 8

You've paid over $1,000 and the lawyer says you owe $1000+. First of all, is this a lawyer or a collection agency? Second, do you have proof of the money paid? The court judgment will say how much the interest is and should have been. Make sure that they're not trying to nail you like 50% interest. Lastly, goto court and get the default order overturned. Did you get served with the claim? Why didnt you goto court? Are you ready for court? These last three the court will probably ask you.

Answer 9

When you can't pay your bills you have to call them right up and explain. Keep a notebook of every date, time, name and conversation, and keep doing it until some correspondence passes between you and the money handler by certified- signature-required mail. Most likely they will work out something that you can live with because they will see that you are acting in good faith. They might even direct you to the services of a financial planner.

You acted like a car thief, using the car for 5 months without paying for it. So what if you weren't, that's how it looks. And you knew you were going to have to pay that student loan off, didn't you? Grow up.

Scale back on your expenses for a couple of years. Are you trying to live a wine & steak lifestyle on a beer & burger salary? Maybe you'd better try milk and peanut butter sandwiches for awhile. People DO DO it and live to tell about it. Quit whining and count yourself lucky for a lesson learned before you have a wife and kids and house in the equation. Alot of people broken-heartedly wish they'd learned how to manage their finances earlier. Congratulations on receiving this early opportunity!

Answer 10

Yes, two garnishes can be made at the same time. They can't take more than 25% of your pay with the total garnishments. If the payroll is 25% or less, there's not much your payroll dept can do since they are following the law.