Bringing Payments Current Before Court to Avoid Garnishment
A few months ago my aunt gave mde an dd my husband a 8.000 dollar personl loan . After a few payments were made we had some personal and fincal set backs including trying to keep our hour from being foreclosed on. We have missed 3 payments to her. She lives in oklahoma and we live in tennessee. She had us served with papers she is sueing us. We called her to try and work this out but she will not budge on it.
my question is if we caught our payments up before the court hearing would that satisfy the judge or could he still garnish our wages?
Before your wages can be garnished you would have to have a judgment entered against you. It does not sound like that has happened yet.
You can certainly bring payments current and see if that changes your Aunt’s position on this. In the normal scope of being sued for a debt by a bank, or other type of financial services company, bring payments current would not generally slow or stop a lawsuit for payment. In person to person transactions, and certainly with family, a good faith effort to get back on track, or even bringing payments current – and then some, could yield the results you are looking for.
Ultimately, I am sure you want to get this repaid. If this is allowed to progress through the courts, there will be additional costs incurred. Some, or all of which, could fall on you.
As far as what a judge may do if you are making every good faith effort to repay your Aunt:
A judge is limited to questions of law and the contract that governs your loan with your Aunt. If a judgment is entered, the judge will similarly be limited to what state law says about what, and how much can be garnished or levied. I do know of many instances where a judge may make a firm suggestion that the parties take additional steps to come to a satisfactory agreement out side of the court. I could easily imaging a judge doing so in this case, especially if you have made all good faith efforts leading up to any hearing.
If it were me in your shoes, I would bring payments current and make additional payments towards the balance of the loan when and where possible right away.
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