1. Statute of Limitations: Each state has a statute of limitations, which sets a time frame within which creditors can take legal action to collect a debt. For vehicle repossession, the statute of limitations typically starts when the vehicle is repossessed. In some cases, the statute of limitations may be as short as 3 years, while in others, it can be as long as 10 years. If the statute of limitations has expired, the creditor cannot garnish your wages for the repossessed vehicle.
2. Judgment: For a creditor to garnish your wages for a repossessed vehicle, they typically need to obtain a judgment against you in court. This means that the creditor would have to sue you for the unpaid debt and win the case. If the creditor does not have a valid judgment against you, they cannot garnish your wages.
3. Exemptions: Many states have wage garnishment exemptions that protect a certain portion of your wages from being garnished. These exemptions can vary by state but may include a certain amount of income needed for basic living expenses, such as food, housing, and transportation.
4. Due Process: Before the creditor can start garnishing your wages for a repossessed vehicle, they must follow certain due process requirements. This includes providing you with notice of the intent to garnish your wages and an opportunity to contest the garnishment.
If you are concerned about potential wage garnishment for a vehicle repossessed 7 years ago, it's important to review the specific laws and regulations in your state. You may want to consult with a consumer protection attorney to understand your rights and options.
