Q&A: Can wages be garnished on a co-signer for an auto loan thats been repossessed?
Question by Tooter: Can wages be garnished on a co-signer for an auto loan thats been repossessed?
I’m thinking about bankruptcy, but my father co-signed with me on an auto loan. Now the collection agency has filed to have my wages garnished. What will occur to my father if I file bankruptcy? Will they garnish his wages?
Answer by SPIFIMAN1
Auto finance is what I do for a living and they can if they take him to court and get a judgment.
At that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any property he may possibly own like cars, boats, land and homes.
You will be protected by your bankruptcy but your co-signer will not.
This will all show on his credit for the next 7-years producing it quite challenging to get any other sort of loan without producing huge down payments, paying enormous fees and State maximum interest rates.
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