Garnishment

[filingin08]

Can a creditor contact your employer and garnish your wages without a judgement? I just got a call from a creditor saying if I didn't call them and work out an arrangement voluntarily by 5pm they would call my employer and take care of it on a nonvoluntary basis. I think it's a scare tactic, but hoped someone here could offer assurance. Thanks.

[chloe0724]

No, you would be notified and have to be given a court date before they can garnish your payroll.

Are you planning on filing soon? Have you retained an attorney? If so, see if your attorney will let you give the collections people his name. That should help get them off your back.

[holding on]

What kind of creditor is it? I know several payday loan companies write into the contracts if you don't pay you authorize them the right to contact your payroll to garnish the funds. Otherwise, no, they cannot garnish your pay without a judgement. Even after they get a judgement they must still file a writ for garnishment. Garishment of wages must also be legal in your state.

[lrprn]

Can a creditor contact your employer and garnish your wages without a judgement?

If the loans are regular loans through a bank or credit union and you live in a state that allows wage garnishment, then the creditor must go to court to get a wage garnishment. This creditor is strong-arming you to get a payment.

HOWEVER, if the loan is a government student loan, then it is possible for a garnishment to be attached to your earnings without going to court.

What kind of loan is this? How far in arrears are you?

[stressin]

This is something I am concerned about as well. I have read that they don't garnish your wages in Michigan unless you make more than 40X minimum hourly wage. Does this mean that if I worked part-time they wouldn't garnish my wages to satisfy a judgment? I don't mind paying what I owe, but I have read that an employer can terminate your employment if you start to rack up wage garnishments. I plan to go back to work after I have closed my business and filed for bankruptcy.

I am planning to file soon. I have an appointment with a lawyer this month and I have saved to pay the retainer. But, it is possible that because of my husband's income and my business income (even though I haven't actually made any money--including a salary because of all the accumulated debt) that I won't be eligible to file a ch 7--or that we will be close to or just over the median. At least that's what the first lawyer said. He also tried to convince us to file together, which I don't think makes any sense because the debt for my business is in my name only and the assets are in my husband's name only. Why trash both of our credit ratings because my business failed?

[lrprn]

He also tried to convince us to file together, which I don't think makes any sense because the debt for my business is in my name only and the assets are in my husband's name only. Why trash both of our credit ratings because my business failed?

Do you live in a community property state, stressin? Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

If you live in one of these states, who owns what doesn't matter. If the business debt was acquired during your marriage, then BOTH husband and wife are responsible to pay the debt. That could be why the lawyer was encouraging you both to file.

And if you don't live in a community property state, there could be other legitimate reasons for filing together. Why did the lawyer say it was best for both of you to file?

[stressin]

Why did the lawyer say it was best for both of you to file?

He didn't really. Just kept saying how bankruptcy was the atomic bomb of credit and that my filing was going to affect my husband. And yes, I can see that if both our signatures were needed to buy a house or similar, my trashed credit would affect our ability to secure a loan. But, we live in Michigan, which isn't a community property state, the business was my idea, my signature is on my business loans, and I don't feel that my business failure should result in my husband filing for bankruptcy.

[filingin08]

I live in Ohio. It's a mastercard. We stopped paying in January and have only paid our attorney 1/2 her fee. Kinda waiting on some poor decisions to roll off the radar before we file (couple months at best). Thanks for the help!