Can my wages get garnished if I don’t pay my car loan?

Common causes for wage garnishment include outstanding court fees, medical bills, child support, unpaid taxes, defaulted student loans, and in some cases, car repossession or voluntary repossession.

If you default on your loan, your lender may repossess your car. To recoup the money you still owe on your loan, the lender will typically sell the car at auction.

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If the lender doesn’t make enough money through the sale of the vehicle to cover the outstanding loan plus any other costs they’ve incurred, you’ll owe what is known as a deficiency.

You’re responsible for paying off this amount. If you don’t, your lender may take you to court to obtain a judgment against you that allows them to garnish your wages.

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If this happens, the court will send an order to your employer to withhold a certain amount from your paychecks. Your wages will continue to be garnished until the debt is repaid in full.


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