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AZ debt collection laws, car repo and wage garnishment, debtors rights

Mesa, AZ |

Do loan companys that repo their cars always garnish your wages? And is there a certin amount that they can take, and do they have to contact you before they do so. Thanks!

If I make a payment of any size every month can they still repo? If not is there a legal minimum % that is established to protect us from repo?.

Attorney Answers 2


  1. No. Sometimes they will just take the judgment and do nothing more because it isn't worth it. Other times they may turn in negative credit info on your credit record and/or just send dunning bill notices to you in the mail. If it is enough money though, they will very often take garnishment efforts. Most states have specific laws that say what a loan company is required to do in order to be able to even try to collect a loan deficiency and quite often the technical requirements are not followed. If they are harrassing you, you should see a debtor's rights attorney quickly. Consumer bankruptcy attorneys often know the law on debt collection too. Call your local bar association for referral to an attorney who handles your kind of dispute.


  2. Ronald is right. I am a bankruptcy attorney in Gilbert, Arizona and your wages cannot be garnished here without first obtaining a judgment against you and then seeking garnishment after the judgment. I also represent creditors from time to time. The maximum that can be garnished is 25% but the court has discretion to go lower if you give reason for it to do so. Often, the creditor will be happy to accept the 15% garnishment without requiring a hearing on it, too.