Garnishment Question (state of residence vs. debt incurred)

[uofaguy]

Hi All,

I'm considering BK (have had consultations with different attorneys) or any other option to get out of my predicament. I have a question for the forum:

Does the ability of a creditor to garnish your wages derive from your state of residency or where the debt was incurred?

For example, I have a home in TX that I am attempting a short sale on (have an offer, currently awaiting the bank's decision). I don't have a lot of confidence in the short sale & a BK attorney suggested I just allow the home to go to foreclosure (in lieu of filing BK) & see if they pursue a deficiency judgment against me. Apparently TX does not allow wage garnishment, but my state of residence, AZ, does allow garnishment. Would the bank be able to get a garnishment against me under AZ law?

Any experience/insight is greatly appreciated.

Thanks - Jon

[danaf]

I believe it's the state where you are working....

[HHM]

Yes, a creditor can garnish your wages within any state you reside so long as the state allows garnishment. But it is not necessarily and easy process...if the creditor actually sues you in the state your reside, then the process is simple, but if they sue you in another state (assuming there is proper jurisdiction in that state), then they have to go through the process of "domesticating" the judgment within the state you reside before they can garnish.

[uofaguy]

Thanks Danaf and HHM. I appreciate the clarification. Someday I'll get resolution on this mess and will be able to sleep again at night!