big trouble- capital one

Creditors take many things into consideration before they decide to sue anyone. They will review first how far have you been in your payments? If you have fallen behind for a couple of months and there is a hope of getting the money back, they may not take any legal actions. If you loan has a co-signor they will contact him to recover the money.

They will try to do a wage garnishment by contacting your place of work. They will also review if you are residing in a place for a long period of time. If you have been changing places regularly, there is a chance of legal actions.

If you are disabled or are above the age of 40, they will think if they can get money from you in any other way. If there is no scope of getting the money, they may take the actions.

Try to focus on the other avenues by which you can do some repair to your present situation. Make the minimum payments to all your debt accounts. If you can get a second job, it will be helpful for you at the present times. Let your creditors understand that you are willing to pay the debt, but if they can give you some time, you will pay off the complete amount.

If there is no chance of getting the money from you, then only they might think to sue you in civil court for nonpayment. They can also report this non payment of your debt to the credit bureaus and this derogatory remark will stay in your file for a period of seven years tarnishing your credit.

The creditors and the collectors must obtain a court ordered judgment before garnishing the wages. This will be applied on 25 percent of the disposable income after deducting the federal and state taxes. Be pro-active while dealing with the creditors and the collectors threatening wage garnishments.

Note: the laws of wage garnishment vary from state to state. Wages can be garnished for child support, alimony, taxes and federal student loans on all states.

Credit Company holds the legal rights on the vehicle until the loan is completely paid off. They get the repossession rights because of the agreement you signed with them and as per the state laws. In some states, they don't need court orders or warning you in advance as long as there is no breach of peace. Before the car gets sold off, you need to talk to your credit company and make a payment so that they can be stopped from taking any further actions.

You need to know the laws in your state by visiting the local consumer protection office. As per laws in some state, the credit company has to notify you the date of the sale of the car so that you can participate in the bidding process. Even if the car is sold privately, you must be notified about it. The creditors are sometimes limited to the ways of repossession and selling a car. If any of the rules are violated, the company has to pay you the damages.