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Can Your Wages Be Garnished after Repossession in Missouri or Illinois?

If your car has been repossessed, you are not necessarily free of the debt that you incurred when you purchased the car. When a car is repossessed, it is eventually sold at auction. If the car is sold for less than what you owed against it, then you are still on the hook for the remaining debt. This remaining debt, called a deficiency balance, will follow you around and can mean future wage garnishments. Of course, the lender must follow Missouri and Illinois wage garnishment laws and get a judgment against you before garnishing your wages. However, it is important to know that this can happen. So what can you do if you have a deficiency balance following you around or you are facing a future wage garnishment?

Should you find yourself in this situation, there is a solution. Missouri and Illinois bankruptcy stops a wage garnishment dead in its tracks and helps you get back on your feet by freeing you from the constant harassment of creditors. A Missouri and Illinois Chapter 7 bankruptcy may also eliminate a deficiency balance and help you truly move forward after a repossession in addition to providing you with protection from foreclosure and credit card debt help.

Sometimes it may be difficult to foresee how failing behind on one payment or running into trouble with one creditor can cause a large ripple effect. Falling behind on a car payment can easily lead to a future garnishment on your wages. When wages are garnished and you are facing a substantial loss of income, it becomes harder to make other payments, like a house payment or even payment on the minimum balance on your credit card. And, it can all start from what seems like a little bump in the road, like a missed car payment.

The truth of the matter is that hard times hit all of us. The difference is whether you decide to take action or just let it happen to you. Remember, doing nothing changes nothing. The best way to protect you and your family is to educate yourself on the consequences of debt and solutions to debt problems, deficiency balances, and looming wage garnishments. Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn the facts you need to know!

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