Does the state of Texas allow garnishment wages for a repossessed vehicle?

In Texas, wages can be garnished for a repossessed vehicle if the lender obtains a judgment against the borrower for the deficiency balance. The deficiency balance is the amount still owed on the car loan after the lender sells the repossessed vehicle.

To obtain a judgment, the lender must first file a lawsuit against the borrower. If the lender wins the lawsuit, the court will issue a judgment for the lender in the amount of the deficiency balance plus court costs and attorney's fees.

Once the lender has a judgment, they can then garnish the borrower's wages. Texas law exempts up to 30% of disposable earnings on garnishment. Garnishment cannot reduce disposable earnings beneath 75% of the federal minimum wage