Can creditors garnish wages on a secured debt?
The long and short of it is--Yes. You signed a promissory note--you promised to pay and you haven't.
A Collection Agency that "owns your debt" can not garnish any wages. Assume that the collection agency in their efforts to collect the debt for their client, sues the debtor and then provoke that the Court works an arrangement to pay the debt, if the arrangement includes garnishment of wages then, the Court can garnish salaries. And there is laws to garnish wages that apply to every state.
There is no such thing as unsecured debt. There is debt that is not secured by collateral. There is debt that is secured by your signature on a contract. And, yes, if the creditor has obtained a judgment against you for credit card debt, they may serve your employer with an order of garnishee and secure up to 25% of your paycheck per pay period.
A creditor can garnish however much the court has given them permission to garnish. The court decides this depending on the kind of debt owed as well as the willingness of the defendant to pay the debt. If it is a debt for owed child support, for example, a huge percentage of the wages can be garnished.
First off...unsecured debt is clearly what the process is for as a secured debt creditor generally doesn't need to use garnishment for collection as they simply take the asset they have the debt secured by. Garnishments are generally allowed for debts you are failing to pay as you swore and agreed you would. There is a process to follow that leads up to a garnishment being allowed, but essentially, if you won't pay your obligations…
Can a private debt collection agency garnish you wages for a non-federal debt like credit card debt?
depending on the state laws,and a courts ruling,credit card companies and other creditors may garnish wages up to a certain percentage,each state has it's own guidlines and provisions,most can be settled for lesser amounts before by contacting the creditor or by going through a debt reduction specialist to lower the amount to settle the debt, or in serious financial hardships to relinquish the debt as non-collectable,but validation of extraordinary circumstances must be proven before a…
A secured debt - is protected by being tied to something valuable (jewellery, car, house etc). If you default on the repayments, you could lose the item the debt is secured on ! An unsecured debt is not tied to any physical property. If you default on an unsecured debt, they will usually take you to court and have the debt recovered from your wages.
Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.
If your wages are being garnish and you relocate to a state that dont garnish your wages will the garnishment stop?
A Collection Agency who "owns your debt", or one who is acting in collaboration with the debt holder may seek a remedy in the courts. If you lose the case, the court has the power to garnishee your wages until the debt is paid. The determination to garnish, and the amount of the garnishment depends a lot on your overall income and net income (gross income minus legimate expenses).
A friends father died and she was the beneficiary of his life insurance policy She is in debt so can creditors garnish that money since she has court orders to repay creditors?
Yes. California allows income garnishment by judgment creditors. The law also allows a judgment creditor to place a lien on real property owned by the judgment debtor. Generally the homestead exemption will protect a primary residence from a forced sale for debt owed. Judgment creditors rarely request a forced sale of a primary residence because it is a complicated and lengthy process and is seldom profitable enough for implementation.
If your trying to avoid paying your credit card debt, please keep in mind that there may be negative consequences. Creditors are multi-billion corporations. They are staffed with 100's of attorneys, and most likely they won't sit back and do nothing. First, they will send you letters reminding you of the delinquent amount that you owe. If you ignore the letters, your creditors will eventually sell your accounts to a debt collector. And then the…
If you fail to pay your credit history and score will be trashed. If you owe enough and fail to pay the creditors may take you to court and sue to garnish your wages. If your creditors don't take you to court they will most likely "charge off" your debt and sell it to a collection agency who will relentlessly hound you for years. It's much easier to pay than to deal with the bad…
A vehicle is a "secured debt". The lender does not have to take back the car if it is not "worth the effort." Because it is a secured debt they can, in most cases, follow legal procedures to collect what is owed. The lender can file suit obtain a judgment and then garnish wages, place liens against real property, levy bank accounts, etc. Honestly, if you can drive it.. take it to the nearest office…