Debt Collection, Garnishment, Repossession

questions & answers

Question: If I'am a co signer on an auto loan, can they garnish my wages?

Answer:

If you feel that you may be subject to garnishment, you may want to contact an attorney because garnishment tends to be very complicated.

Generally, as a co-signer to a loan, a person agrees to become responsible for the debt if the other person stops paying or left a deficiency balance after recovery (such as when a car has been repossessed and later sells for less than the balance of the loan).  Although there is no statute that directs a creditor to attempt collections from a particular debtor – creditors may focus in on the "most collectible" party, or the party who they expect will be able to repay the loan.  You may want to review the laws on garnishment of earnings which can be found in the Arizona Revised Statutes (A.R.S.) under Title 12, Chapter 9, Article 4.1 (beginning with A.R.S. § 12-1598). You may also want to review the materials on the Arizona Supreme Court's website on garnishment.