Can my paycheck be garnished ifI have debt thatI do not pay?

We have been paying on a mobile home 14 years and have recently moved to another state because of work. They are charging 18.9%. We still owe them $20,000. We are no longer living there so what are our options?

Asked on August 24, 2011 West Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Your pay check cannot be garnished for an unpaid debt if there is no judgment against you yet. in order for a wage garnishment to commence in all states in this country, there first must be a lawsuit against a person, a default/default judgment, a dispositive motion or a trial resulting in a judgment against a person.

If you have been paying a loan at 18.9% annual interest rate on a $20,000 balance owed for a mobile home, that rate is quite high given current market conditions. Depending upon the fair market value of this mobile home and the amount of equity in it, you should consider refinancing the 18.9 % loan at a much lower rate.

If you can refinance this loan at a significantly lower interest rate, your monthly payments will be significantly less.


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