Re: Past Auto Loan hunting me....
Hi – I got some questions:
Do you have a written agreement between the person whom was suppose to make the payments but did not? Could you go after them for any money – possibly in small claims court?
What state are you in? What year was the judgment granted?
If I read your post correctly there was a lien placed on your home, but you entered into an agreement to pay 1,000 and they were to release the lien – then you entered into an agreement to make monthly payments correct? Do you have proof a release of lien has been entered and there is no lien on the property?
If you don’t mind me asking what is the monthly payment? Depending on what state you are in you may want to take the garnishment vs. the monthly payments you agreed to. So if you currently are not able to make the monthly payment you might find the weekly garnishment will be a more manageable amount.
Little bit about garnishment: The amount of pay (salary, wages) subject to garnishment is based on an employee's "disposable earnings," which is the amount (wages) left after legally required deductions are made. Deductions include federal, state, and local taxes, the employee's share of State Unemployment Insurance and Social Security.
The Federal law sets the maximum amount that may be garnished in any workweek or pay period - the weekly amount may not exceed the lesser of two figures: 25% of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage (currently $7.25 an hour).
Depending on what state you live in you might find that the State garnishment max is lower than the Federal Law of 25%.
Example, I live in Michigan which follows Federal Law of a max of 25% of my disposable earnings is garnishable. But if I lived in New York the max would be 10% of my disposable earnings are garnishable.
If you want to pursue the improper service angle, you will have to research how to vacate a judgment in your state and there might be time limits are on when you can petition the court. Also keep in mind if the court does vacate the judgment due to improper service it does not stop the law firm from re-filing the lawsuit and process starts all over again.
Oh and yes they can continue to charge interest till the debt is paid in full; it varies from state to state and can range from 15% (Maine) to 1% above the 5-year T-note rate (Michigan) – which is why it’s important to research your state judgment laws.
Good luck with everything.
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