Can a car loan company garnish wages?

We recently had a family emergency, and I completely forgot to pay my car loan at the end of last month. I’m also not sure if I’m going to be able to afford my payment this month. I don’t know what to do next. Will my lender garnish my wages?

Answer
I’m sorry to hear about the family emergency, and I hope everyone is okay!
If permitted in your state, a car loan company can garnish wages—but only after the car has been repossessed and sold for less than you owe.
Fortunately, it sounds like you still have the car, which is a relief! But you should contact the lender immediately to avoid repossession. It’s in a lender’s best interest to work with you. So after explaining the situation, hopefully you will find a solution that works for both parties.
If you anticipate repayment will consistently be difficult, you may want to consider refinancing into a new loan with lower monthly payments. Alternatively, you can look into ways to save on other expenses—such as your car insurance.
To save money on car insurance, use Jerry, an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Jack Walsh
Answered on Dec 09, 2021
Jack is an insurance specialist and writer living in Buffalo, New York. He has a BA from Union College and worked as an insurance agent with Jerry before joining our content team. He enjoys using data and research to break down complex subjects and convey a story. In his spare time, Jack enjoys cycling, cooking, and exploring Buffalo’s beautiful waterfront.
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