Is this true re: judgements?

[momof3b1g]

I got this from a site someone posted and had no idea.

I worried as they haven't yet. I was served a summons and complaint in Nov, they then sent a 2nd letter in Dec. saying i had additional 30 days to replay.



My lawyer told us that the could not garnish my wages, i don't make enough and if they froze our accounts we would get a letter and we would just send it back saying they cannot because we receive some kind if aid. They made no mention of having to file in court. I called but the secretary said she could not get back to me until the morning. I'm sick, as ev1 has said it takes awhile for them to get a judgement.

How do they know if you have money?

It is so cheap and easy, it makes sense for debt collectors to sue every consumer they can, add on all the fees they can, figure out if the consumer has any money to take, and file the lawsuit only if they do.

[optimistic1]

According to this website, it is very, disturbingly true indeed.

Wage garnishment laws in Minnesota favor banks and collectors, according to the attorney general in that state. She is trying to reform the laws that govern garnishment.

The Attorney General of Minnesota said that she is pushing to reform laws that allow creditors and debt collectors to garnish the wages of debtors without court approval. But industry advocates say the process keeps debt collection cases out of clogged courts, a contention backed up by reported turmoil in the courts of another state.

Minnesota AG Lori Swanson told The Star Tribune that her state is one of only five states that allow creditors to garnish debtor wages without court action. She wants to change the laws to give consumers their day in court.

"The issue is not allowing people to evade their bills. We need to have balance and fairness in the system,'' Swanson told the paper.

At particular issue is the requirement in Minnesota that consumers respond to a garnishment summons in writing. Many consumers feel that a call to the collection agency constitutes the legally-required “answer” to the summons. But if the answer is not in writing, a collection agency can begin garnishing wages.

The Star Tribune notes that creditor and accounts receivable management advocates say that the court-free garnishment process saves time for both collectors and consumers and “relieves pressure on already-backlogged courts.”

This point was underscored in a Monday article in the Atlanta Journal-Constitution. The paper noted that in Atlanta’s four most populous counties – Cobb, DeKalb, Fulton and Gwinnett – courts are so burdened with garnishment requests that payouts to creditors are being delayed.

In Fulton county, garnishment filings have been increasing at a rate of about 15 percent for each of the past five years. Cobb county officials expect a 20 percent increase in the filings for 2008.

Mark Harper, Fulton state court clerk, told the AJC that the county has fallen so far behind on processing claims that payouts required by state law to be made within 16 days are now routinely handed out in eight weeks or more. Cases with complications can wait up to a year before they are resolved and payments begin, he said.

[optimistic1]

According to you state law, they can only take 25% of your take home pay, but you might have a judge lower it if it causes you hardship.

Ask yourself this.

Take your take home paycheck and multiply it by .25, then multiply by 2, if you are paid bi-weekly.

Then, compare that number to the amount you were already paying the debt when you were current.

It might be less than what you were paying already, so try to deal with it, until you can actually file.

They cant take more than the 25%

[momof3b1g]

According to you state law, they can only take 25% of your take home pay, but you might have a judge lower it if it causes you hardship.

Ask yourself this.

Take your take home paycheck and multiply it by .25, then multiply by 2, if you are paid bi-weekly.

Then, compare that number to the amount you were already paying the debt when you were current.

It might be less than what you were paying already, so try to deal with it, until you can actually file.

They cant take more than the 25%

We stopped paying 3 years ago so that doesn't do me any good. Things have changed alot since then.

[optimistic1]

Oh, and they still have yet to take advantage of those laws? They must be totally unaware, because the newsletter I posted above, states that the Attorney General was wanting to reform these laws in September, just three months ago.

I would just ask your attorney, I would just be speculating on this thing, just trying to help though.

[momof3b1g]

oh, and they still have yet to take advantage of those laws?

no!

[StartingOver08]

Aren't you filing in the next 30 days? Just make sure all of the debts are on your petition. Then you will not have to worry about the garnishment.

I also read that they have something called 'pocket service' in Minnisota (you don't even have to be served first). Hopefully the laws change soon for you because I can see where this combination is very scary.

Fortunately you can file BK and be done with it!

[optimistic1]

I wouldnt even let it stress you out considering you are filing in 30 days, get off the computer and go out and have a nice dinner. Your starting over, be happy!

[momof3b1g]

We will be filing in feb. But they very well can get a garnishment or freeze our accounts before then. If they wait until the 30 days after the 2nd letter that will be before the end of jan. I do not want to loose any money to these people!

[StartingOver08]

We will be filing in feb. But they very well can get a garnishment or freeze our accounts before then. If they wait until the 30 days after the 2nd letter that will be before the end of jan. I do not want to loose any money to these people!

Then take it out of your accounts and pay by money order or something.

[momof3b1g]

Then take it out of your accounts and pay by money order or something.

We have taken out all our money and pay with money orders but we have our 2nd mortgage with the bank so we can't close the accounts. But have to deposit the $ for the loan every month. So if there is nothing in the accounts they get nothing?

[StartingOver08]

If they are doing a pre-judgment garnishment they can only take out what is in the account, IMO.

I would not deposit funds to pay that 2nd. I would leave just a little in the account (like $10). Pay the 2nd mtg with a money order if you are keeping the property. If the bank is doing an auto draft for the loan, just stop the auto draft.

If anyone goes after the $10 you haven't lost anything and you have the rest of your funds with you.

It would be a shame if you deposited funds into the account and a creditor took the funds just when you deposited them. So, until you file, I would not keep funds in that account - or any account - tied to a creditor.

[momof3b1g]

If they are doing a pre-judgment garnishment they can only take out what is in the account, IMO.

I would not deposit funds to pay that 2nd. I would leave just a little in the account (like $10). Pay the 2nd mtg with a money order if you are keeping the property. If the bank is doing an auto draft for the loan, just stop the auto draft.

If anyone goes after the $10 you haven't lost anything and you have the rest of your funds with you.

It would be a shame if you deposited funds into the account and a creditor took the funds just when you deposited them. So, until you file, I would not keep funds in that account - or any account - tied to a creditor.

I will have to check with the bank. I think we had to have it taken from our account. Or it may have been easier. But the next payment for that isn't due until feb 15th. So hopefully we have filed by then.

Oh another thing I was thinking, what if they get a judgement and when we file our tax return it gets taken because of the judgemet. Can they do that? Oh and I'm afraid to have it deposited into our account as if it gets frozen. Can we have it deposited into an accoutn with my husbands name only? We file jointly.

[momof3b1g]

Do you have an attorney you are working with? These questions and based on the state you live in along with the fact you have been served and need to respond should all be addressed to your attorney who can give you clear legal advice.

Yes i called yesterday and still waiting a return call.