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Why would a creditor sue you if you live in a state that does not allow wage garnishment?
Wiki User
∙ 16y ago
It is possible that the person has other property which can be seized for payment of the debt. A writ of judgment (pursuant to state laws) can be used to levy bank accounts, liquidate nonexempt property (such as cd's, stocks, bonds), and place liens against real estate. Also, it establishes the priority of the credit card company's debt should you ever come into the possession of property that can be seized. They can file a lien against you based on their judgment and will be able to collect against you before later lienholders. Duration of a lien is based on state law. Moststates permit the lien to last around ten years. Liens can be renewed by refiling. Future property may be threatened by a lien unless you file bankruptcy after the credit card debt arose and before you buy the real property (like a house). Further, I think the credit card company must make a good faith attempt to collect before they can write the debt off their taxes. It is best to know what your state laws allow before taking further action.
Wiki User
∙ 16y ago
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What is the maximum wage garnishment in the State of Alabama and would is a garnishment dischargeable in bankruptcy?
The state uses federal garnishment guidelines which would be a maximum of 25% of disposable income with the first $154.50 of weekly salary exempt from garnishment. The 25% only applies to creditor garnishment, it does not apply to court ordered child support, tax arrearages, and in some cases spousal maintenance or personal injury awards. Garnishment for those issues can be as much as 50% depending upon the circumstances and the decision of the judge. Wage garnishment for creditor debt can be eliminated in bankruptcy. Garnishment for the other issues cited such as child support cannot.
How long does it take for a credit card company to be able to garnish your wages?
A credit card company cannot garnish your wages. A creditor must follow due process according to the laws of the debtor's resident state. Which means a lawsuit would have to filed, the case won, a judgment filed and granted and then the judgment executed. All states have laws that govern garnishment amounts. Some states such as Texas do not allow creditor garnishment at all. The average time it takes for a creditor suit to be filed and reach court is 15 months.
Can they garnish your paycheck or tax return for the remaining balance on your repoed van?
A creditor would have no authority regarding a tax refund. But they can file suit and if they win, receive a writ of judgment. They could then use the judgment as a wage garnishment according to the laws of the state where the debtor lives. Texas, South Carolina, North Carolina and Pennsylvania do not allow wage garnishment by creditors. All other states have established their own garnishment statutes, most follow the federal wage garnishment guidelines.
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
Can a creditor refuse a voluntary repossession and still demand payments?
yes, as this would make it easier to obtain a judgment and/or wage garnishment for whatever is owed.
What is the process used to garnish a person's wages?
The creditor or person who is owed money must bring a lawsuit against the debtor in the proper court. If the plaintiff wins the case they will be granted a judgment, the judgment can then be enforced as a wage garnishment against the debtor, in accordance with the laws of the state where it is issued. Please be adivised there are four states that do not allow wage garnishment for the collection of creditor or personal debt owed, they are Texas, Pennsylvania, South Carolina and North Carolina.
What is the maximum wage garnishment in the State of Alabama and would is a garnishment dischargeable in bankruptcy?
The state uses federal garnishment guidelines which would be a maximum of 25% of disposable income with the first $154.50 of weekly salary exempt from garnishment. The 25% only applies to creditor garnishment, it does not apply to court ordered child support, tax arrearages, and in some cases spousal maintenance or personal injury awards. Garnishment for those issues can be as much as 50% depending upon the circumstances and the decision of the judge. Wage garnishment for creditor debt can be eliminated in bankruptcy. Garnishment for the other issues cited such as child support cannot.
Does new york allow garnishment of wages?
The law allows only one garnishment procedure at a time, they are taken in priority; for example a wage garnishment for child support would supercede a garnishment for credit card debt. The maximum for creditor debt in N.Y. is 10% of gross income (income before any deductions). The maximum for child support is 25% of disposable income (income left after state and federal taxes, social security, medicare, pension, etc.) When pertaining to garnishment by creditor lawsuits the law allows the state percentage to be used if it is lower than the federal amount. Pursuant to federal law, the first $154.50 of weekly income is exempt from garnishment.
Would a state or federal garnishment be less as applied to a student loan in New York state?
The maximum federal garnishment is 25% the maximum NY state garnishment is 10% (this does not apply to child support or spousal maintenance). Therefore the state garnishment would be the lowest, but if the student loan(s) are federally subsidized the law may allow for the higher federal garnishment to be used depending upon the person's financial status. Such issues as being disabled, head of household, and so forth would be a factor in the percentage of garnishment allowed.
How long does it take for a credit card company to be able to garnish your wages?
A credit card company cannot garnish your wages. A creditor must follow due process according to the laws of the debtor's resident state. Which means a lawsuit would have to filed, the case won, a judgment filed and granted and then the judgment executed. All states have laws that govern garnishment amounts. Some states such as Texas do not allow creditor garnishment at all. The average time it takes for a creditor suit to be filed and reach court is 15 months.
Can a person's wages or bank account be garnished for credit card debt in Texas?
The creditor would need to obtain a lawsuit judgment from the Texas court before wage garnishment would be allowed. Texas only allows garnishment of wages when there are no other means for a judgment creditor to collect a debt owed. If a judgment has already been entered against the debtor in a different state, the judgment creditor can place a "foreign" judgment lien against property owned by the debtor.
Can they garnish your paycheck or tax return for the remaining balance on your repoed van?
A creditor would have no authority regarding a tax refund. But they can file suit and if they win, receive a writ of judgment. They could then use the judgment as a wage garnishment according to the laws of the state where the debtor lives. Texas, South Carolina, North Carolina and Pennsylvania do not allow wage garnishment by creditors. All other states have established their own garnishment statutes, most follow the federal wage garnishment guidelines.
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 the state of Arizona can you be garnished for child support and creditor at the same time?
Probably, yes. But both parties ganishing the wage need to be aware of each other. I believe that the law allows the inbdividual enough remaining income on which to live. If the State of AZ is garnishing the wage, the state's garnishment would probably have precedent over any other creditor.
Can you decrease wage garnishment if it is causing you to get evicted from your current residence?
The person involved should petition the court where the garnishment order was granted to have the garnishment lowered due to it creating an "undue hardship." This appeal is only applicable if the garnishment is for creditor debt, it would not apply in cases of child and/or spousal support orders.
If a judgment has been filed against you on a credit card debt in the state of Georgia legally what can they do to collect the debt?
Depends on what state you are in. Some states allow a creditor to garnish your wages or take the funds from your bank account. Of course, the creditor would have to know your bank info. or employer to do this. Some states also allow collection against your assets, i.e. home. It just depends on what state you are in. In Texas, where I practice, a home is non-exempt from collection and wage garnishment is only allowed in child support cases. I do not know what state you are in to advise you specifically. Collecting on a judgment is a long process and is usually very hard work for the creditor b/c they have to find out what your assets are, where you work, which bank you use, etc. Depending on the amount of the judgment, it may or may not be worth it for the creditor to incur the expense of collection. It depends on the amount of the judgment and the creditor. I would consult a local attorney or bankruptcy attorney that is familiar with the collection laws in your particular state. Good luck.
Can short-term disability payments be garnished?
All Social Security benefits are exempt from garnishment by creditor judgments. Likewise, all military and federal government pensions and public assistance funds. Private disability such as workman's compensation would be subject to the laws of the state in which the beneficiary resides. Not all U.S. states allow the exemption of private disability and/or pension benefits from creditor garnishment. Please note, exempted funds such as SS benefits should not be comingled with other income to avoid the seizure by creditor judgment. It is the responsibility of the debtor to present documentation to the court as to the exemption status of specified monies.
