Wage Garnishment

[VPixie]

What is the name of your state? California / Nevada

My boyfriends car was reposessed and sold at auction. We knew the car wasn't worth more than $2000, but the collection agency wouldn't negotiate with us.
He owed $10000, at auction it sold for $2000. They notified him that he still owed $8000, and had him arrange to have $100 taken out of his account every month. They said if he didn't do this, they would garnish his wages. At this rate he will be paying it off for 6 years!

Is there any way around him having to pay for a car he doesn't have anymore? One of my family members told me their experiance, and they never paid back the difference, they just waited out the SOL. Can he do the same?
He is an independant contractor, can they garnish his wages?

The loan was signed in Nevada, but he lives in California now. (i don't know if that makes any difference)

 

[planitmedia]

Repo Car

NEVADA

I'm not a lawyer so don't take this as legal advice....

In order to garnish wages, etc., they must first sue you and get a court order. They are trying to collect on whose behalf? Is it the tow company? If so, I do know this:

I'm acquainted with the owner of a tow companies in Nevada, who told me they say whatever it takes to scare owners whose towed cars are being sold in auction into paying them the difference. They threaten to sue, garnish wages, whatever it takes to suck you dry and make them rich. The guy was laughing as he told me this...apparently, they get a big kick out of profiting from others misfortune. What's really sad is, I believe our laws give them the right to do this. The good news is, he also told me his threats are nothing but threats. They never actually sue or garnish wages, they just want you to think they will because it makes them richer.

Advise your friend to call and put a stop to the automatic withdraws, then back it up with a certified letter. Also, keep a watch on the account to make sure they don't later try to reinstate the auto deductions.

Ohhhh, there's so much more I could say but won't. Just, trust me, he doesn't have to pay another penny for the car they auctioned, he's already been robbed enough.

 

[JETX]

"Is there any way around him having to pay for a car he doesn't have anymore?"
*** No. The creditor has the right to pursue the deficiancy (owed, less proceeds from sale, plus costs of sale).

"One of my family members told me their experiance, and they never paid back the difference, they just waited out the SOL. Can he do the same?"
*** He can certainly try.... and whether it will succeed or not will depend entirely on the creditor and their intentions.

"He is an independant contractor, can they garnish his wages?"
*** No. But as an independent contractor they can intercept 100% of his 'billings'.

 

[VPixie]

Thank you so much for your replys. Unfortunatly it wasn't a towing company, it is a collections company (though what you have told me about towing companies makes them shadier than I already thought they were...)

I am not sure but he mentioned something about how only $10 of the $100 he pays per month is going to his debt, the rest is all interest on the deficiancy. at that rate he will be paying this off for the rest of his life! what is the best way to negotiate?
will they be able to take "repossession" off of his credit report if we pay a lump sum to get it out of the way?
Do they often take less as a negotiation (if we offered a solid $4000 of the $8000 he owes) or will they demand that he pay it off in full?

Thank you guys very much!

 

[julbug66]

if it's a collection agency asking for the money, they can't garnish your wages WITHOUT a court order.

how did they get your bf's account information? tell the bank to stop all withdrawals from that company since they are unauthorized. if your bank can't or won't, close the account.

this sounds like just more debt collector BS with the threats and extortion.
and, unless they were the ones who repossessed the car, no, they CAN'T take it off your credit report. even if they could, they probably wouldn't anyway since nothing would make them.