Personal Loans and Garnishments
Over the course of the last 5 years or so, my aunt has loaned me a sum of $12,000. $7,000 was for a car she helped me purchase and the other $5,000 was for wedding expenses. I agreed to pay her back verbally. I did not sign any IOU's or contracts or anything for that matter. I have paid her when I could and whatever amount I could afford at the time. She has always said not to worry about it. Now, she and my family are not talking due to some family dispute. I have been told that she is now seeking garnishment of my wages. Can she do that? Am I legally bound to pay her back? What should I do if she tries to garnish my wages?
Thank you for your time.
1 Answer from Attorneys
Re: Personal Loans and Garnishments
She cannot garnish your wages without a court order, and she can't get that without a judgment. TO get a judgment, she would have to sue you in Associate Circuit Court for the full amount due. She could certainly do that, even though the agreement was not in writing. However, you would have a multitude of defenses to assert if that happened.
The best bet is to sit down with your AUnt and try to work it out now BEFORE lawyers get involved.
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