avoiding wage garnishment

[rsmathers]

I am planning to declare bankruptcy in August when my IRS tax debt becomes discharegable. I have recently received a summons in regard to a seperate debt that is approx $730. I fear that they will attempt to garnish my wages forcing me to declare before my tax debt is dischargeable. I live in Colorado and am self employed (I am payed by the same 3 sources each week if that matters). Can they collect against my bank account? What is the best action to take so I can hold out until August?

Thank you for any suggestions.

[HHM]

That's is probably too long a time. Unless your perpared to defend the lawsuit (and even if your are), they will get a judgment against you which acts as a lien against all your real and personal property. So yes, they can collect your bank account, or any other asset.

[rsmathers]

I was told by someone that I ought to contact the attorney and see if they will settle for $200 and say that I am starting a bankruptcy and payments under $600 to creditors are not considered a preference.

[rsmathers]

Does that sound like a good idea?

[HHM]

Yeah, you could try that.

[Shrike1070]

You will in most likelyhood lose the judgement in court. But there are a couple of things you can do to stall their efforts. First you need to send an Answer to their Complaint via registered mail and make a general denial-get an attorney to help you prepare this. You also need to send them a letter requesting Verification of Debt (VOD). There are a variety of websites where you can find form letters that will help you in these two areas, if you can't find an attorney or afford one. I believe they have to halt the judgement process until a VOD is acquired and sent to you. And then in most states, you have up to 45 days to send an Answer to their Complaint before the court date is set. And then after that, depending on the court's docket load, you might not even have to appear in court for several months. So you may be in luck or you might not be. It just depends!


Remember, do EVERYTHING in writing by registered mail and do not conduct any negotiations over the phone, especially when talking to someone about scheduling payments. DO NOT give them any personal financial information at all such as bank account numbers or the like. The first thing these people will go after are your bank accounts after a judgement. They will drain them dry.

---I AM NOT AN ATTORNEY, NOR DO I REPRESENT MYSELF AS ONE, PLEASE BE SURE TO GET PROFESSIONAL LEGAL ADVICE BEFORE PROCEEDING AS ALL CASES AND STATE LAWS ARE DIFFERENT.

[Doomchen]

I owe Bank One 6.600 $. They agreed to settle for half and we made a payment schedule that I was unable to keep. I was not able to make my first payment of 1.100 $. I am trying to renegotiate with them. What can they legally do or what would probably be their next course of action if I can't come up with the money? And what are my options?
Everything has been done over the phone so far, nothing in writing...