A person can be threatened with garnishment -- the forcible seizure of part of a person's income -- by creditors if he fails to make good on a loan or a bill that he owes the creditor. Generally, any kind of debt can be collected from a debtor through garnishment if the creditor is able to win a lawsuit certifying that the debt is owed him. This includes debt from a broken car lease.
Car Leases
When a person signs a car lease, he agrees to pay a certain amount of money over a set period of time for use of the car. Most car leases do not allow the person to cancel the lease before paying the amount of money in the original agreement. Even if the person surrenders use of the car, he is still responsible for paying the amount of money he agreed to pay when he took the lease out.
Debts
If a person fails to make good on his lease contract, then the finance company that issued him the lease may attempt to collect the money he agreed to pay in court. The finance company may sue the leaseholder, seeking to have the debt legally recognized. If a judge reviews the case and declares that the debtor does indeed owe the finance company money, the finance company can take various steps to collect.
Garnishment
Once a finance company has won a civil judgment against the lease holder, the court will order the leaseholder to turn over the appropriate amount of money to the finance company. If the debtor will not, then the finance company may ask the judge to allow it to garnish the person's wages or his other source of income. If the person is not legally protected from garnishment, the judge may grant the order.
Considerations
Some states do not allow garnishment for certain types of debts, such as debts owed to private creditors. A person wondering whether he can be an object of garnishment should check with legal counsel in his state. In addition, while a creditor may be legally allowed to pursue garnishment, this doesn't mean it will. The process can be expensive, and the creditor may not find it financially worthwhile to pursue a debtor in court.
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