Husband Filed For Bankruptcy
My ex-husband filed for bankruptcy and left me with the car loan. He had signed a separation agreement to make payments to me, but because it`s not support/maintenance, this debt will be discharged. He lied on his bankruptcy statement, however his trustee refuses to investigate this and is taking him at his word. I cannot financially afford to pay for the car loan myself. Can my wages be garnished by the loan company for the car? He sold the car last year, and forged my name on the registration, however it cannot be proved that he was the `forger`.
Posted from: Newfoundland and Labrador
The first thing your creditors will likely do is to seize the vehicle. This typically is done prior to considering a garnishee. Once the car is sold and the sale proceeds are used to pay the legal fees and sales costs, the remaining amounts will be applied to the loan. There is normally insufficient proceeds to pay the loan in full, so the amount left (shortfall) is something you will then be responsible for. It is at this point that if you are not able to arrange an acceptable payment schedule that the lender will typically consider a garnishee.