Can credit card company garnish wages it you default on a loan?
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Can credit card company garnish wages it you default on a loan?
Asked on November 27, 2012 under Bankruptcy Law, Tennessee
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Ultimately yes, it can. However, in order to do this it would need to go to court and prove the validity of the debt (i.e. that the loan was defaulted on). Then the court would issue a jugement (i.e. an order allowing the creditor to collect from you, the debtor). This order is what gives a creditor (i.e. the credit card company) the right to contact your employer and have your wages garnished.
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