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.

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.

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

Very legal. Try to get a handle on your finances, and how you spend your discretionary income. You've got a long, hard life ahead of you if you continue on this path.

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.

Yes you can be garnished and yes even though you no longer have the vehicle you still owe the amount due on the contract.

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!

If you're not paying your bills, they have every right to garnish your wages to collect the money owed.

You just said you didn't make your car payment for 5 months. Many lenders will repo after 90 days! Did you call the bank and explain to them you're out of work and ask them to cut you a little slack? Sometimes they will. If you didn't, then, you bet what they're doing is legal.

This happened to me before with a 10 yr old credit card. I went to a lawyer and talked to them, I ended up not having to pay a penny, you should get your own attorney. I think that you do have to pay the difference between the book value of the car and the loan amount. As far as the student loans, you are screwed. Once you default on them, they can take everything from you. Also, student loans cannot be cleared through bankruptcy! Good Luck

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.

try to settle with that auto judgment for less or work out a payment plan. Most states alow 25 percent of you pay to get granished. with guessing your income is over 40k a year making you attractive for them to file suit. people think once your car get repoed you are done with it, they are wrong and it is very unfortunated. settle settle settle, threaten bankrupcy and see if you can get a 7-9k loan and tell them if they do not take it you dont have anyother choice then to file bankruptcy. that will raise eyebrows and with that cash in hand it will get that taken care of. Make sure to get all of that in writting. Your student loan if it is federal there is nothing you can really do, bankrupcies dont forgive that debt.

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.

Wage garnishment is a legal procedure in which a personâ€™s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support. Title III of the Consumer Credit Protection Act (CCPA) prohibits an employer from discharging an employee whose earnings have been subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect it.

Title III protects employees from being discharged by their employers because their wages have been garnished for any one debt and limits the amount of employees' earnings that may be garnished in any one week. It does not, however, protect an employee from discharge if the employee's earnings have been subject to garnishment for a second or subsequent debts.

Title III applies to all individuals who receive personal earnings and to their employers. Personal earnings include wages, salaries, commissions, bonuses, and income from a pension or retirement program, but does not ordinarily include tips.

A garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party (the garnishee) to pay money, otherwise owed to the defendant, directly to the plaintiff.

Wage garnishment, the most common type of garnishment, is the process of deducting money from an employee's monetary compensation (including salary) as a result of a court order. In the United States, such payments are limited by federal law to 25 percent of the disposable income that the employee earns. Garnishments can be taken for any type of debt but common examples of debt that result in garnishments include:

child support
taxes
Unpaid Court Fines
any other type of money judgment
When served on an employer, garnishments are taken as part of the payroll process. When processing payroll, sometimes there is not enough money in the employee's net pay to satisfy all of the garnishments. In such a case, the correct order to take a garnishment must be satisfied. For example, in a case with federal tax, local tax, and credit card garnishments, the first garnishment taken would be the federal tax garnishments, then the local tax garnishments, and finally, garnishments for the credit card.

At present four U.S. states â€” North Carolina, Pennsylvania, South Carolina and Texas â€” do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed. Several other states observe maximum thresholds that are lower than the 25 per cent maximum provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver).

The other type of garnishment, also known as attachment, requires the garnishee to deliver all the defendant's money and/or property in the hands of the garnishee at the time of service of process to the court, to be paid over to the plaintiff. Since this type of garnishment is not continuing in nature, but is not subject to the type of restrictions that apply to wage garnishment, it is most often used against banks, or other persons or companies that incur liquidated obligations in the regular course of business.

There are only a few requirements that must be meet before the IRS start a wage garnishment:

The IRS must have assessed the tax and sent a Notice and Demand for Payment;
The taxpayer must have neglected or refused to pay the tax; and,
The IRS must have sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
The IRS can serve the Final Notice in person, leave it at the taxpayerâ€™s home or usual place of business, or send it to the last known address by certified or registered mail. It is important to note that the IRS is only required to send the Final Notice to the last address known to it. The taxpayer does not need to actually receive the notice for it to be effective. Many taxpayers never actually receive the final notice. Those taxpayers may not realize they are in danger of receiving a levy until their wages are actually garnished.

Yes.

I suggest you to get a second job and sell everything you have (Including your clothes and your bed)

I also suggest you to buy your next car with your own cash.

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