Can wages be garnished for the balance of an auto loan in the state of Delaware
Yes, they can be garnished for this reason.
You can be sued for the amount owed. Pursuant to that, you could have your wages garnished or be arrested for contempt if a judgment is placed against you and you refuse to pay.
The deficiency balance in every state as relates to repossession is the outstanding balance of the original principle plus fees accrued by the repossession process that remain after the resale of the repossessed vehicle.
Yes. Even though the vehicle was repoed, they could take you to court for the remaining balance, or what they didn't recover through resale of the vehicle. You would be notified that you are being sued, and have the opportunity to go to court in your defense. If the court finds in favor of the lender (which they generally do), you could have your wages garnished. That may be the point where you have to decide if bankruptcy may be right for you. Bankruptcy would stop those proceedings and keep your wages from being garnished.
A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.
If the lender has obtained a judgment against you, and garnishment has begun, yes. The lender will continue to garnish your wages until the balance of the debt is paid. This could include the remaining balance after the vehicle was sold at auction and all costs, interest, and penalties incurred by the repossession.
yes
"remaining balance" as in what you are behind OR the remaining balance due on the loan??
If a car is sold after repossession does the law states that it must be reported to the credit bureau as zero balance?
IF the lender accepts it you can.
Gap insurance only pays if the vehicle is totaled in an accident or stolen and not recovered. It does not cover the deficiency balance after a repossession sale.