QUESTION
If we go through a foreclosure, does an employer have the right to garnish my wages?
Asked on Jul 21st, 2011 on Bankruptcy - Georgia
More details to this question:
It looks like my wife and I may need to go into foreclosure. My income is from disability and my wife works for the national bank that picked up Countrywide's mortgages. After 21 years at the same location she is now the manager of her branch, which started out as a different bank. If we get foreclosed, can her employer garnish her wages? Can they jeopardize her job? Our house is in a small historic town that really got hit hard by the value downturn. We now owe probably 1/2 of the last appraisal. We have lived here 16 years and did a lot of improvements over the years. And we also got a Title 1 loan 2 1/2 years ago for the full amount of 25k.Need any good advice or comment's that we can get.
6 ANSWERS
Debtor's Rights Attorney serving Atlanta, GA
at
Theodore N. Stapleton, P.C.
Update Your Profile
It depends upon whether the mortgage company confirms the foreclosure sale and pursues an unsecured deficiency claim. They may or may not.
Answered on Jul 25th, 2011 at 12:43 PM
You need to see a bankruptcy lawyer that can save your house in a Chapter 13 plan. It is not your employer that garnish your wages it is the Creditor.
Answered on Jul 22nd, 2011 at 1:46 PM
Bankruptcy Attorney serving Herndon, VA
at
Maureen O'Malley
Update Your Profile
You can be sued for the deficiency owed after the foreclosure. Or they can send you an IRS Form 1099, meaning the deficiency is taxable. History with a creditor means nothing. Or you could file bankruptcy and have none of these financial consequences.
Answered on Jul 22nd, 2011 at 12:18 PM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
After foreclosure of your residence nothing is owed so there couldn't be a wage garnishment. If you file bankruptcy you are protected from employment discrimination, public or private, under section 525 of the bankruptcy code. In other words your work is not affected on account of bankruptcy.
Answered on Jul 22nd, 2011 at 11:51 AM
Glen Edward Ashman
If there is a deficiency, the lender can sue after foreclosure and then do a garnishment of wages and bank accounts. If you are facing foreclosure see a lawyer to determine if filing a bankruptcy is possible as that would prevent this outcome.
Answered on Jul 22nd, 2011 at 11:40 AM
Probate and Estate Planning Attorney serving Stratford, CT
Partner at
Rosenberg & Hite, LLC
2 Awards
Foreclosure will likely result in loss of house, but not a money judgment that would lead to garnish. Investigate your options with an attorney as soon as possible.
Answered on Jul 22nd, 2011 at 11:40 AM