Due to a large IRS collection, I fell so far behind on a vehicle payment I had to let it go. I was told in order to make payments now I have to come up w/ a sizable amount, I am not able to do that, they advised me to try & make a loan, my credit is shot already to make a loan. The bank cleaned out my bank acct. now I'm way behind on other bills as well, I want to repay my debts but if the bank keeps taking my checks, I can't keep up w/ my other bills & It just keeps getting worse. How much of my paycheck can the bank take? I'm done repaying the IRS now & am stuck.. I can't repay other loans as well if the bank takes all my check...Help..
2007-09-19 19:23:30 · 6 answers · asked by dee 1 in Business & Finance ➔ Credit
Not all states allow garnishment for non-tax or non child-support payments. If your state allows wage garnishment for regular debt, they can take UP TO 25% of your gross pay. If you have multiple garnishment orders the maximum at any one time will be 25%, and it will be up to the courts how that gets split up. Usually they give it all to one creditor until that is paid off then work on the next one.
If they have attached your bank account there is no limit. They can freeze your account for any amount up to the amount of the debt that is owed.
However, in both of these cases they can not do anything until there is an order from the court to do these things.
2007-09-19 19:38:22 · answer #1 · answered by OC1999 7 · 0⤊ 0⤋
One thing at a time. The bank is not taking your money, it is a wage garnishment or seizure from the IRS. On the vehicle, the loan company will resell the car for what it can get, and if you are lucky they will get enough or almost enough to pay off what you owe. Then they will come after you for the remainder. Sounds like your best bet is to file bankruptcy, but that still won't clear your debt with the IRS.
2007-09-19 19:52:15 · answer #2 · answered by sbyldy 5 · 0⤊ 0⤋
They'll just take the car to auction and sell it. If they get more than the vehicle is currently worth, they'll send you a refund for the difference. If it is less, they'll bill you the difference.
If you cannot come up with the amount of the loan you owe plus impound fees and towing, it's better to let it go.
Everyone falls on hard times.
2007-09-20 02:16:15 · answer #3 · answered by Big Bear 7 · 0⤊ 0⤋
first why is the bank still taking your money if the payments to the IRS are done? if you do not know then ask them.
do you have other judgments against you where they are taking money from your account? if you do not know get your free credit reports and find out.
the garnishment is state regulated so you will need to check that with your state. the bank is not taking your money some collection or court entity is.
2007-09-20 01:36:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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2007-09-20 09:49:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2007-09-19 19:30:49 · answer #6 · answered by noob 1 · 0⤊ 0⤋