Legal Question in Credit and Debt Law in Michigan

I financed a car in Michigan. After 2 years, on a 6 year plan, I lost all income and the car was repossessed for no payment. The car was placed in an auction and sold by the financing company. To date, the financing company garnish my state income tax refunds for payment. Can they continue to charge me for a car that they have took away from me and sold?

Asked on 1/30/17, 10:41 am

2 Answers from Attorneys

Andrew Campbell Andrew L. Campbell Attorney at Law

Yes, they can. If you did not contest the lawsuit and fight it on liability then you admitted to liability. In Michigan a creditor can renew a judgment at least once within 10 years time and continue to charge interest up to 13%. It depends upon what the judgment says as to interest.

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Answered on 1/30/17, 10:53 am
Thomas R. Morris Silverman & Morris, P.L.L.C.

I agree with Mr. Campbell.

In order to obtain garnishments, the creditor has to have a judgment, so I assume that the creditor has a judgment. The amount for which the car was sold should have been deducted from the total amount you owed if it was a purchase, or otherwise taken into consideration if it was a lease.

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Answered on 1/30/17, 11:04 am

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