Garnishment for Credit Card?
Answers:
I was actually in the same position. I contacted the court who made the ruling. I had to provide documentation on EVERYTHING. And they adjusted the amount.
"Federal law limits the amount of income that can be garnished to less than twenty-five percent of the employee’s disposable earnings (after-tax earnings), or the federal minimum hourly wage multiplied by 30. The smaller of these two figures is the limit that a creditor can garnish. "
I think that you should try, because it's the only way you'll get relief. You need to pay your debts, but you need to live even more.
I am not sure how it got to this point, so that may be a factor in affecting your options.
I would work out a payment plan with the creditor, if they will do that. It sounds like it may be too late for that though.
Bankruptcy? Higher paying job?
It may be one of those cases where all you get out of this is a learning experience.
Good luck.
Come to Texas where they can't do that!
Obviously the creditor already has a judgment.
I doubt seriously if they would even talk to you about lowering the amount being taken out of you check. I mean, why should they?
You can talk to your lawyer and try, and I wish you the best of luck.
The only option would be to contact the creditor to work out a payment plan or a settlement for the remaining balance. Otherwise they will continue to collect until the balance is paid. You should also be aware that this garnishment will follow you around because it is attached to your social security number. If you were to quit your job it is very likely that they will garnish your bank account. When this happens they will take all the available cash you have in it. It can make a real mess because if you have any outstanding charges or checks they will likely bounce. I am speaking from my own experience with this. When this hap pend to me I was able to contact the creditor and set up a payment plan. I eventually paid it off.
Your first step is to research your local court rules. Note that in many states, the judge has the ability to order installment payments for the amount you can afford.
Every state works a bit differant, but let me explain how Michigan and a few others work.
You go down to the courthouse and file a "motion for installment payments". There is a small fee for this, probably $25.
The judge will look over your request and any information you supplied. If he feels it's appropriate, he will issue an "order for installment payments". You present this to the creditor and your employer, and this will stop the garnishments. It's a legal "stay" that prevent the creditor from taking any further collection action other then accept your installment payments.
But be warned, if you are late or miss a single payment, this will be void the agreement, and there is little you will be able to do to get the judge to reinstate it.
If you state does not allow this, you are in for trouble. Remember the collection agent gave you lots of opportunities to pay the debt, and you forced him to go all the way with a judgement and garnishment order. Very few collection agents will work with you after this. Why should they? They know they are going to get their money.
ou could try what Shona did, but that'll cost you money too. I'd find out who is the BEST lawyer in your area for BANKRUPTCIES -- then you'll be FREE ! It will cost between $1000 & $2500 to file for it, but you'll most likely be able to make payment to the lawyer.
As soon as you are financial free you WILL start to get tons of offers for credit in the mail! DO NOT EVEN OPEN THEM ! Either write return to sender on them (draw a line or X through your name & address & put back in the mail !! You obviously have had not had any training in finances, so you need to learn it on your own !
There is a FABULOUS BOOK (she has several) by a woman named: SUZE ORMAN -- she's been on OPRAH many time & even taught OPRAH some things !!! Either get her books at your library or from AMAZON.COM -- even take a look at goodwill's book sectoin where they are only 50-cents to a $1 per book !! READ THEM FROM COVER TO COVER -- read each book as often as you need to really learn -- you could go from less than broke to a millionaire (as many women have done -- with the right knowledge !). There are many excellent financial books by other authors too -- use them all, and get YOURSELF EDUCATED b4 you ever use another CC ! CC's have their place, but they are NOT FREE MONEY as many people seem to think .
Your credit rating is the very next most important thing you have next to your health and sometime in the future your health could actually depend on your credit rating !! So get it fixed and keep it fixed! And most IMPORTANT -- EDUCATE YOURSELF ! gOOD LUCK HONEY, AUNT BARBIE (P.S. -- I went from $0 on wedding night at 17yoa to $750,000.00 by my 33 birthday. Buy LAND !)
aLSO . YOU CAN ONLY FILE BANKRUPTCY 1 TIME IN 10 YEARS, SO DONT THINK IT'S A WAY TO RUN UP DEBT & ESCAPE FROM WHAT YOU OWE, AND i BELIEVE YOU CAN ONLY FILE TWICE IN A LIFETIME! aND THAT MAY HAVE BEEN CHANGED LAST aUGUST WHEN THE GOV. TIGHTENED UP ON BANKRUPTCIES!)
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