QUESTION
Can a credit union garnish your wages for an unpaid signature loan?
Asked on Aug 20th, 2014 on Bankruptcy - Nebraska
12 ANSWERS
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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They can if they obtain a judgment in court.
Answered on Aug 25th, 2014 at 5:37 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes they can.
Answered on Aug 25th, 2014 at 5:37 PM
Yes, if they get a judgment.
Answered on Aug 25th, 2014 at 5:37 PM
Domestic Law Attorney serving Vista, CA
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Ralph L. Williams
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Yes, but this must have obtained a money judgment from the Court first.
Answered on Aug 25th, 2014 at 5:37 PM
Bankruptcy Attorney serving Huntington Woods, MI
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Detroit Lawyers, PLLC
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If they sued you and obtained a judgment for it... yes.
Answered on Aug 25th, 2014 at 5:37 PM
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Yes. Check your agreement you signed with them as to whether they can exercise off-set. Otherwise, they must first sue and get a judgment, then they can garnish your account, wages, or seize funds in other accounts. You may want to open a separate account at a different bank to avoid off-set.
Answered on Aug 25th, 2014 at 5:36 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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The answer assumes you are in California. The short answer is yes. After they sue and get a judgment from the court they can take that judgment to the employer and start garnishing wages up to the amount permitted by law.
Answered on Aug 21st, 2014 at 8:23 AM
Sure, any creditor that obtains a court judgment can garnish your wages. But it is worse than that when the creditor is your credit union. The CU has the right to just grab any money in your account for a debt owed to them, and it also has the right to add any debt you owe them to any other debt you owe them. So if you have a car loan or a mortgage with the credit union, you won't get a clear title until you pay off both the original financing and the signature loan. Called cross collateralization look it up.
Answered on Aug 21st, 2014 at 8:22 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Any lender can garnish your wages for an unpaid debt. In order to do a garnishment in Ohio, they have to go to court, get a judgment against you and an order of garnishment.
Answered on Aug 21st, 2014 at 8:22 AM
William M Stoddard
Once they have a judgment against you, yes. They have to seek an order from the court that the debt is still owe. You have to be served so you know this is happening. Once they get a judgment, then they have all remedies they need to get paid. That includes garnishment.
Answered on Aug 21st, 2014 at 8:19 AM
Deborah F. Bowinski
Before wages can be garnished, the credit union would have to file a collection lawsuit and obtain a money judgment against the borrower. Once that is done, the lender is free to file a garnishment to force payment of the obligation.
Answered on Aug 21st, 2014 at 8:18 AM
Yes, a credit union will have the right to garnish your wages. It must first file a lawsuit and obtain a judgment.
Answered on Aug 21st, 2014 at 8:05 AM