Debt Collection

I have been paying 100$ a month for the past year and a half to pay on a car repossession. I applied for a car loan and the bank found out and called me and said they are going to garnish my wages because I could be paying more. I explained I needed a decent car to get to and from work thats why I applied for a loan. Then she says that my first obligation is to pay off my debt. I then said i need a decent car to get to and from work or she'd be getting no money because I'd lose my job... anyways, can she garnish my wages even if I'm paying on time every month toword the debt? My state is wisconsin.


Thanks

Dear c dallas,

Did the creditor sue you and obtain a judgment against you? If not, then they must sue you and obtain judgment before they can garnish your wages. If they have a judgment they can garnish up to 20% of your net income in Wisconsin.

Whether or not there is a judgment, the creditor may procede with collection action against you until the debt is paid in full. Once you defaulted the full balance became immediately due and they are only letting you make payments out of courtesy. They can modify the arrangement or cancel it at any time.

Good luck,


[email]JASON@LEGISLATOR.COM[/email]