Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Question about garnishments, and any recourse?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Question about garnishments, and any recourse?

    Hi there! I'm a new user, and am hoping maybe someone here can help answer a question I can't find anything about online

    I live in Colorado, and have a large debt from several years ago (original creditor was HSBC Bank).

    Maybe 6 months ago, the collection agency handling the account currently sent me notification of a lawsuit - I did not answer with the court, as there was a page offering payment arrangements.

    I tried to make TWO different payment arrangements, PRIOR to the 'court date', both of which were declined by HSBC. So, the court awarded a default judgement (it IS my debt - no sense in trying to fight it)

    After the default judgement was awarded, the collection agency went IMMEDIATELY after the contents of my checking account, and cleaned it out And, over the last 2 months, I have been working with a representative of the CA to TRY to set up arrangements - but every offer I make has been DECLINED by HSBC.

    On 10/30, the CA representative essentially told me that HSBC is refusing to allow me to make ANY arrangements, and will ONLY offer to 'settle' for 90%, which is over $3700 - I don't have that!!!!!!

    She then recommended that I simply try to make direct payments, as sort of a 'good faith' gesture, but also made it clear there was no guarantee.

    And then, on 11/13 (2 weeks later!!!), they moved forward with filing for wage garnishment, which I just learned of today.

    The CA rep I've been working with is actually very compassionate, and has forwarded my case to a manager, in hopes that there may still be an option to set something up and prevent the garnishment.

    But, my question is this: Is it actually LAWFUL for HSBC to flat out DENY me the right to make payments on this debt, and then turn around and garnish my wages???? It seems to me that this is WRONG!

    I have never denied this debt, and have made MANY attempts to do the right thing (well documented by the CA rep as well) - how can this be OK?

    I just wonder if I have any recourse at all. I realize this is MY problem, and NOT theirs, but I have 2 children to provide for, who's well-being (not to mention Christmas) is being threatened by this

    Does anyone have any insight?

    Thank you in advance!

  • #2
    They have a judgment. The judgment is their claim reduced to a certain dollar value. They do not need to negotiate, be compassionate, or accept partial payments. The time to do that was back when it was in collections. Yes, the collection business is tough.

    Having wrote that, there are protections (usually) for a head of household that is providing for children. You really need to get a consultation with an attorney (or several) which deal with judgments. In my State, Florida, they can't go after much of a Head of Household's income so wage attachment could be limited in a case like yours (in my State). I do not know how Colorado deals with this.

    However, if you just sit around and try to work through this CA or negotiate with HSBC, you are probably working this incorrectly. You should have filed an answer to the garnishment and should have claimed that those were wages of a Head of Household (or whatever protections Colorado provides). So, I would be looking to not only declare your wages (and protecting as much as possible) but also your banking accounts. I do not know the process for Colorado. (I don't know it for Florida either, but I'm familiar with Florida.)
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


    • #3
      First do what JustBroke said above.

      The laws vary by state, in Arizona for example, there is a threshold for wages that would have to be met before they could attach your wages, so if you earned very little, you could file a response in court indicating this, and your wages would be safe from garnishment.

      Next, if Colorado laws don't offer the necessary protection for your wages as Head of Household, low income wage earner etc., then move on to the next step:

      1. Is this the only debt you have? Or do you owe a significant amount of other debts?

      2. Can you afford to lose 25% of your wages right now and for however long it takes to pay off the judgment?

      If you answered yes to #1, then start the process of filing bankruptcy. Bankruptcy will end the wage garnishment and probably get rid of the rest of your debts.

      If you answered no to #1, then $3700 is a rather small amount to be filing bankruptcy over.

      But if you answered no to #2, then you should probably file bankruptcy anyways.

      However, if you answered no to #1 and yes to #2, then I would just sit back and let them garnish away until the debt was paid off, and look for ways to thwart them from getting paid. For example, if you can find a way to become self-employed, now is the time to do it. If you don't mind temp jobs, now might be the time to do them, etc.
      The world's simplest C & D Letter:
      "I demand that you cease and desist from any communication with me."
      Notice that I never actually mention or acknowledge the debt in my letter.

      Comment


      • #4
        The problem with letting them garnish you is that they will take 25% of your wages--and 100% of your bank account--thereby leaving you nothing to pay rent, utilities, buy food, etc. If the laws of your state allow for a hardship objection to garnishment, then I suggest you file the appropriate motion to contest the garnishment, or at least limit what the creditor can take. If not, then it sounds like it's time to file for bankruptcy.

        Comment


        • #5
          Originally posted by bcohen View Post
          The problem with letting them garnish you is that they will take 25% of your wages--and 100% of your bank account--thereby leaving you nothing to pay rent, utilities, buy food, etc. If the laws of your state allow for a hardship objection to garnishment, then I suggest you file the appropriate motion to contest the garnishment, or at least limit what the creditor can take. If not, then it sounds like it's time to file for bankruptcy.
          There is, of course, a simple solution to that problem.

          I think anyone who has read my posts probably already knows what I am going to say at this point.

          If someone files a lawsuit against you, your money is no longer safe in a checking account or savings account at any bank I know of.

          Your money is sadly safer as cash stuffed under your mattress than it is in a bank at that point.

          The solution is simple: stop direct deposit from your employer and get paper checks instead. Then go to the local bank branch upon which the check is written, and stand in line and cash the checks. Then simply go back home with it and put it into a fire-safe container and put it in a secret area in your house. Use money orders and pre-paid debit cards to pay your bills. Use cash to buy everything else, at the store for example.

          Then, close your checking and savings accounts.

          If you do not have a checking account, nor a savings account, then there is no way for them to get at that money.

          That's what I have done since Capial One sued me, and it has worked fine for me. I have found that I end up spending less money when I buy things with cash, so overall it has helped me.

          Treehugger no longer seems to post on here, but he was someone who, rather than filing bankruptcy, he just let them garnish away, and just learned to live without the 25% of his income.



          And, back to my original point: if there are no other debts for the original poster, then this is simply too small of an amount of debt to bother filing bankruptcy over. If this person is unable or unwilling to file it pro se, they might have to spend almost that amount to a bankruptcy attorney to file bankruptcy. And then they can't file again for a number of years. I see it as the nuclear option-- if all else fails, file bankruptcy. If I ended up with huge medical bills or some other big lawsuit came my way, I would want to preserve the nuclear option til the very end so I could use it to get out from under a mountain of debts.

          Like I said earlier, on the other hand, if this person has other debts and obviously can't pay them, then going down the bankruptcy route is the right thing to do.
          Last edited by GoingDown; 11-25-2012, 02:25 PM.
          The world's simplest C & D Letter:
          "I demand that you cease and desist from any communication with me."
          Notice that I never actually mention or acknowledge the debt in my letter.

          Comment

          Unconfigured Ad Widget

          Collapse
          Working...
          X