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Does a creditor have to serve you the debtor with wage garnishment papers prior to garnishment?
Wiki User
∙ 12y ago
Generally no. The judgment that proved the debt is ample notice you owe.
And on the same concept, there really isn't any reason to think a creditor has to tell you about what legal actions it may take to collect the debt you really were never supposed to owe and force them to do. You were simply supposed to pay as you promised...even without them having to ask! But to be certain, any action you take to avoid their legal collection process, like moving/hiding assets can be construed as criminal............
If you have a good reason to show why you don't owe the debt being recovered (that isn't things like you can't, don't want to pay, don't like what was bought, now think the interest rate is too high, etc), but that you either paid off, or never actually incured the loan or received the money/benefit)...a court will quickly stop the garnishment and insist any funds be returned.
If you incurred the debt, made the loan, received something of value from the creditor...you made a legal binding agreement and swore and agreed to pay...and if you didn't - your the one that is acting illegally!
Wiki User
∙ 12y ago
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Will bankruptcy prevent wage garnishment?
Depending on what the date is that the bankruptcy was filed would depend on if you can be garnished... not to mention there is an entire process that has to be done before a garnishment can be implemented. First the creditor would have to prove deliquency on bill ( which isn't hard) Secondly said account must be within the state statute of limitations ( varies state to state ) Lastly the creditor would have to have a judgment implemented on the debtor before a writ of garnishment can be implemented. ( Note if the said debt was opened during the course of the Bk then it can also be pursued stat permitting. If the debt was incurred prior to filing BK then no you could not be garnished in any way
In Illinois can joint tenants who are also heirs intestate be required to sell the jointly owned property to pay the debts of the deceased?
Generally, jointly held property passes automatically to the surviving joint owner. It does not become a probate asset so it is not exposed to creditors. However, the situation changes if the creditor attached the property prior to the death of the debtor. Creditors can attach jointly held property while the debtor is living but if a creditor fails to attach prior to the death of the debtor then the property passes to the surviving joint tenant and the creditor is out of luck.
Can a creditor be excluded from a debtor who filed chapter 11 and wishes to continue to purchase goods and can the goods sold prior to the chapter 11 filing be excluded?
Such decisions as a rule are left to the bankruptcy court. Generally such action is not allowed as it would be viewed as favoritism to one creditor.
You filed your bankruptcy and a couple of days later you received a garnishment letter can you get the garnished wages back?
To start with you would receive a copy of the Garnishment Summons from the court at your last known address. You would need to advise your attorney so they can "Quash" (no not squash) the garnishment. If at that time your employer has taken any funds from your pay and either sent them directly to the judgment creditor or to the court, the attorney would then request/demand the funds be returned to you- the judgment debtor. If the court receives a copy of the bankruptcy at any time prior to the return court date, they return the original payment to the employer who will then refund back to the employee.
Laws Governing Wage Garnishments?
A wage garnishment is the required withholding of an employee's income by an employer for the payment of a debt. Such requirements may be the result of a court order or may be in accordance with an IRSor state tax collection effort. While laws governing wage garnishments can vary from state to state, federal law generally supercedes state law unless state law grants extra protections to the debtor.Federal law protects debtors from being discharged by their employers due to the required garnishment for any one debt. It does not protect debtors from being discharged by their employers if their wages are garnished for more than one debt. Federal law also dictates that under most circumstances wage garnishments cannot exceed more than 25% of a debtor's disposable income, this limit applies regardless of how many wage garnishments are in effect. Exceptions to this include garnishments for child support payments, tax payments and/or payments associated with a bankruptcy ruling.Creditors typically only use wage garnishment as a last resort collection effort, because of the legal hurdles involved. In most states, a wage garnishment can only be imposed after a court has rendered a judgement that says the debtor owes the money and then issues a court order imposing the garnishment. These are often separate court decisions.In order to avoid a potentially embarrasing wage garnishment, a debtor might want to consider negotiating a settement with the creditor. Creditors are required to notify a debtor of impending legal action prior to initiating a lawsuit and generally prefer to work directly with a debtor rather than go to court. In many cases, a debtor may wish to consult with an attorney to determine whether the debt is legitimate and the extent of his/her options. An attorney knowledgable in debt collection and bankruptcy law can advise the debtor on the applicable statute of limitations, the maximum garnishment amounts, and the best way to manage the debt.There are other types of garnishments besides wage garnishments, including bank garnishments. A creditor may seek to have a debtor's bank account garnished if he/she is not gainfully employed. In the cases where a debtor is employed and a lawsuit has been initiated by the creditor, wage garnishments are the most common method of collection.
Collateral Assignment of Lease?
Collateral Assignment of Lease(Download)_________________________, referred to as DEBTOR, and ____________________________, referred to as SECURED PARTY, agree:DEBTOR is indebted to SECURED PARTY pursuant to a _________________________ dated _________________________ in the original principal amount of $______(_______________________________& _____/100 dollars); and DEBTOR is the lessor under a lease agreement with ___________________, referred to herein in tenant, for a term of ___________________ months, for the following described premises:____________________________________________________entered into on _________________________; THEREFORE,DEBTOR absolutely assigns to SECURED PARTY, all of DEBTORs right title and interest in said lease, including all rents, profits or other payments on account of said lease or the occupation of the property. In the event of a termination of the lease described, DEBTOR agrees that any further leases of the same premises, or other receipts from the exploitation of the property shall be assigned to the SECURED PARTY.DEBTOR herewith covenants:that DEBTOR is the sole owner of the lease and that DEBTOR has the right to assign this lease;that the DEBTOR has performed all covenants required to be performed by the lease;that the DEBTOR has not previously assigned the lease;that the LESSEE is not in default under the lease;that the present remaining balance under the lease is $______(____________________________&_____/100 dollars).DEBTOR agrees:that DEBTOR will continue to perform all obligations under the lease required to be performed by the DEBTOR;that the DEBTOR will make no further assignments of the lease without the prior consent of the CREDITOR;not to materially change the lease without the prior consent of the CREDITOR;not to agree to a release of the lessee; termination, buy out or other settlement of the lease without the prior written consent of the CREDITOR;to irrevocably appoint CREDITOR as its agent to enforce the lease and further authorizes CREDITOR to pursue such legal or other action as may be deemed by CREDITOR to be necessary to protect its interest herein. CREDITOR may, in its sole discretion, enter into a settlement of the lease obligation with the LESSEE and may release the LESSEE on behalf of DEBTOR. DEBTOR agrees that it shall honor such releases.In the event of a default by DEBTOR in payment or other terms of the ____________________________, CREDITOR may take possession of the premises, and manage the same. CREDITOR shall not be liable for any loss sustained by the DEBTOR due to the management of the premises should CREDITOR determine to do so, unless the loss is caused by bad faith, gross negligence or willful misconduct.Should the CREDITOR manage the premises, if the lease requires the DEBTOR to pay property or other taxes, CREDITOR shall withhold sums sufficient from the rental or other payments to amortize and pay the taxes.Any net profits after expenses incurred by CREDITOR in managing the premises shall be applied to the obligation secured hereby.This agreement provides an additional right, cumulative to all other rights, if any, possessed by the SECURED PARTY, and the SECURED PARTY shall retain all other such rights.Dated: ______________________________________________________________________________Creditor____________________________________________________________Secured PartyCollateral Assignment of LeaseReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. This document is another that provides a creditor with additional collateral to either extend credit or forebear from foreclosing on a debt.1. Make multiple copies. Give one to each signatory. Keep one copy with the transaction file.
Why would a creditor garnish a bank where I don't have an account?
This begs curiosity as to why you would be aware that the creditor attempted to garnish an account where you have no accounts. Prior to serving garnishment of an account, the creditor will need to know that you do have an account or accounts at the bank. This is typically verified by the legal department or a skip tracer. If no account exists, or if there are no funds available to attach, the creditor will be notified, but there is no reason for a bank to notify you if no account exists. If you have no account at a bank, for all intents, you do not exist to the bank.
If a Chapter 7 has been discharged can anything be added to the original bankruptcy?
Debts which are retained in a Chapter 7 case are normally retained in one of two ways: (1) the debtor simply keeps paying the debt, keeps the collateral (such as a house or a car) and the creditor keeps accepting the money without any additional documents being signed by the debtor or creditor, or (2) the debtor formally "reaffirms" the debt by signing a "reaffirmation agreement," also signed by the creditor, which is filed with the Court. A reaffirmation agreement puts the debtor back on the hook for the debt since it waives the debtor's discharge on the debt. Debts which are reaffirmed during a Chapter 7 case can be "rescinded" (i.e. canceled) by the debtor providing notice to the creditor that they are rescinding the reaffirmation agreement PRIOR TO to the Discharge date or within 60 days after the reaffirmation agreement is filed with the Court, whichever is later. It is best to ensure that the notice to the creditor is in writing, and is preferably sent to the creditor by certified mail, return receipt requested, so the debtor can prove that the creditor received notice of the cancelation prior to the deadline. If one keeps a house or other debt in bankruptcy and then decides they don't want it, if the debt was not reaffirmed then the person can probably give the collateral back to the bank and walk away (see your lawyer). If one formally reaffirmed the debt, then one can normally rescind the agreement if the Discharge has not yet been granted or if it has not been 60 days from when the reaffirmation agreement was filed with the Court (again, see your lawyer). But, if the debt was formally reaffirmed and the deadline to rescind has expired, then the debtor will no longer be protected by the bankruptcy and will therefore probably still be liable on the debt (see your lawyer). Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Are you responsible for debt of spouse prior to marriage in Tennessee?
No. Please be advised, that if the creditor sues for the debt and wins a judgment the judgment can be executed against a bank account held by a married couple even if only one spouse is the debtor. The non-debtor spouse would be required to supply the court with documentation of his or her ownership rights to the bank account that could be subject to levy. Likewise, the judgment creditor might be able to place a lien against property jointly owned for the debt owed depending upon how said property is titled.
Creditor, Objection to Debtor Offset?
Creditor, Objection to Debtor Offset(Download)Date:Name of Debtor (Person Owing Debt)Address:Dear Sir or Madam:We acknowledge receipt of your check tendered in the amount of $_________, which we accept as payment against your overdue balance of $___________, without acknowledging any of the conditions attached to your payment.Please remit the balance of $ ___________ prior to __________ (Date) to avoid further charges.Yours very truly,___________________________Authorized Employee or IndividualCreditor, Objection to Debtor OffsetReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. This letter is intended to object firmly to a notation, comment, or other written item on the face of a check objecting to the charges and stating unilaterally that this is in final settlement of the charges due.To be effective, this kind of letter must be sent promptly and followed up clearly. If this is a unilateral offset by creditor, debtor should be able to collect as long as the debtor is solvent. If, however, the creditor discussed a payment with debtor, but did not in the end agree to one, the debtor has the potential to cloud the matter in court. If the creditor in fact made an offer as suggested by debtor, then the offer should be accepted and this letter not sentthough some creditors might be tempted to try to “get away” with it.All of this is one reason why written correspondence of all kinds is better for both parties if they intend to meet their obligations. Oral conversations are best for defendants seeking wiggle room (e.g., “but he said....” and so on and so on). Be so advised about the business practicalities when engaging in this kind of transaction.Having said this, a personal signature at the bottom of the letter is advised. You should also start a file on the debtor to anticipate further problems and have your records in order. This letter clearly puts the balance back into the “due” column and therefore should be attended to as if it were never objected to by debtor. Proceed accordingly.
How To Stop Wage Garnishment?
Creditors sometimes seek wage garnishments in order to collect money owed to them by a debtor. The creditor must present their case to a court. The court will then decide whether issuing a writ of garnishment is advisable. If a writ of garnishment is awarded, the court will order the debtor’s employer to withhold a fixed amount of money from each paycheck and deposit it according to the writ’s directions. Halt Garnishments Before they Begin The best way to stop wage garnishments is to act quickly and halt the process before the garnishment is awarded. While many people want to avoid dealing with debt that they cannot afford to pay, it is unwise to ignore the situation. In most instances, creditors resort to filing for a wage garnishment only after a debtor ignores all other attempts to work out the issue. Working out an agreed upon payment plan or other arrangement is the most hassle-free solution for both the debtor and the creditor. This will stop wage garnishments before they begin. Filing Bankruptcy If a mutually acceptable arrangement cannot be made with the creditor, then filing bankruptcy may be the only option left for the debtor to stop wage garnishments. When a bankruptcy is filed, if puts a halt to any collection attempts. For this reason, it is commonly used to avoid judgments and stop wage garnishments. Reversing Garnishments While not completely impossible, reversing a writ of garnishment that has been awarded is an extremely difficult task. The debtor’s only option once a garnishment is in place is to file a Claim of Exemption. This form can be obtained from the local court house, but needs to be filed with the court that issued the writ. A Claim of Exemption basically informs the court that the wage garnishment is causing an undue financial burden. The court will hear the case and evaluate the garnished person’s income and expenses to determine whether the writ of garnishment should be set aside. This is the only way to stop wage garnishments once they are in place.
Debt Compromise Agreement?
Debt Compromise Agreement(Download)_______________, referred to as CREDITOR and __________________, referred to as DEBTOR, agree:CREDITOR, hereby agrees to compromise the indebtedness due the CREDITOR on the following terms and conditions:1. The Creditor and the Debtor agree that the present debt due is $ _______ (____________________________________ &___/100 dollars).2. The parties agree that the Creditor shall accept the sum of $ _______ (_____________________________________&___/100 dollars) as full payment on said debt and in complete discharge of all moneys due, provided the sum herein shall be promptly paid in the following manner: ____________________________________________________________3. In the event the Debtor fails to promptly pay the compromised amount, the undersigned creditor shall have the right to prosecute its claim for the total debt due under Paragraph 1 less any payments made.4. This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.Signed and sealed this ____day of _____, 20__._______________________________ By Creditor_______________________________ By DebtorDebt Compromise AgreementReview ListThis review list is provided to inform you about this document in question and assist you in its preparation. Get this document in place prior to sending money to a creditor. A creditor is well advised to get this document in place before finalizing an agreement.1. Make multiple copies. Give one to each signatory.
