QUESTION
Can a collector garnish my wages for a Toyota lease I terminated a year ago? How?
Asked on Aug 27th, 2015 on Bankruptcy - Washington
More details to this question:
One and a half years ago when injured and unemployed had to turn back in leased vehicle. Tried to work with Toyota, asked for help, no one helped, had paid almost $18,000 toward the lease. Now on credit report and received intimidating phone call from collections saying wage of wife will be garnished if don't pay $5,000 in two days. Can they do this?
9 ANSWERS
Is there a court judgment against you and your spouse? Because without a court judgment, no creditor is going to be able to do anything. People are sued everyday for vehicle deficiencies, and the fact that you turned in the vehicle voluntarily does not get you any points when it comes to collecting.
Answered on Aug 31st, 2015 at 12:59 PM
Employment & Labor Attorney serving Weston, FL
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Behren Law Firm
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NO in fact, if you speak with me further, we could probably sue them for violation of laws for such conduct.
Answered on Aug 28th, 2015 at 10:32 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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In order to garnish your wife's wages, Toyota has to have a judgment against your wife. Unless they have a judgment, garnishment is an empty threat (and an illegal one under the Fair Debt Collection Practices Act).
Answered on Aug 27th, 2015 at 10:41 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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They are probably trying to intimidate you. In most of the English-speaking world, a creditor cannot do a garnishment against you unless they already have a judgment. If they had sued you, you certainly ought to know about it. However some thoroughgoing crooks will file a lawsuit and destroy the copies that are supposed to go to you. Therefore you probably should check with the clerk of court in your district or county to see if some lawsuit was filed of which you did not previously know. You can then take court action to get these people off your back. You also might want to consult a lawyer who is familiar with the federal truth in lending act. This law might also be able to protect you and punish the collectors.
Answered on Aug 27th, 2015 at 6:58 PM
Yes, even though they have the car it is typical fo there to be a deficiency on repos. They can garnish your wages, but only after obtaining a judgment on the debt.
Answered on Aug 27th, 2015 at 6:20 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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It is possible that they can garnish your wife's wages in two days if the creditor already has a judgment for the defaulted lease and has started the garnishment process. It is not possible to eliminate your remaining obligations under a lease by simply returning the vehicle. Most likely, your wife and her employer already would have received a copy of the garnishment documents if that were possible. However, you should consult an attorney regarding your options. It is likely that you may need to file for bankruptcy relief.
Answered on Aug 27th, 2015 at 6:19 PM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
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Not without getting a judgment first. Have a consumer lawyer examine the documents, as there are often defenses to deficiency claims. The threat violated the Fair Debt Collection Practices Act (1k damages plus attorney's fees).
Answered on Aug 27th, 2015 at 4:33 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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The only way a creditor like this could garnish your wages is if they actually had a judgment. You would have to be served with a lawsuit and either default or lose the case in order for a judgment to be entered. However, many times creditors claim to serve consumers and in fact they never did. As a result a judgment is entered and you are not aware of it. If you did not complete a lease agreement however they can attempt to collect on the balance owed on the lease. I would suggest that you contact a bankruptcy attorney to review your case.
Answered on Aug 27th, 2015 at 4:32 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Eventually they can garnish if they sue and get a judgment. From what you report it is impossible to see where in the process you are. If they made that threat and there is no judgment, this is a violation of the Fair Debt Collection Practices Act and you can recover punitive damages. You need to see an attorney.
Answered on Aug 27th, 2015 at 4:27 PM