Can a collection agency garnish wages on a credit card debt less than $3000?

Question

Since most consumers have an average credit card debt less than $3000 (for ONE credit card each), would a collection agency actually go through all this effort to garnish a debtor's paycheck when the debtor may have other bills to pay which may total thousands of dollars? Also, if it takes months to get a court hearing set up between the plaintiff and the defendant, isn't there a strong chance that the debt owed to the collection agency could already be paid down by the time the court hearing takes place? In other words, the credit card debt would be at a lesser amount than the initial amount that was first presented to court by the collection agency.

Answer 1

They can get a judgement but I seriously doubt they want to go through the hassle for such a small debt. Even if they could garnish wages, which I don't think they can for credit card debt, they won't even get what your minimum monthly payment would be if you can prove all of your money goes to neccessary bills and living expenses. See if you can negiotiate a settlement with the credit card company that will save you both time, money and headaches if not just send them something every month and they can't say you are not paying down your debt.
Good Luck

Answer 2

Echo's answer covers most of what I would have said...let me add a couple things. Whether a collector sues you greatly depends on the amount of the debt and where you live in relation to the collection agency. Many times they won't mess with debts under $500...for $2000 you will be a target. Remember that just because the address of the collection agency says Nevada doesn't mean they don't have a local office in your state. If they have a local office, they will sue for even small amounts because they are already going to court to hear other cases, and the court will group all their cases on one docket. I've seen the same collection lawyer do a dozen cases in a row. So you need to look at these factors. Your debts are 5-6 years old currently. After7 years (from the date of the delinquency) they will drop off your credit report. As time goes by, the effect of negative items on your report lesson, but if you pay off the debt, it will turn your listing to a recent standing, and that will hurt your credit until it finally drops off. So my recommendation is to follow Echo's advice and find out what the SOL is.....if it's over the limit ignore them. If it's real close don't pay it and see if they goof up and fail to file. DO NOT try hiding behind a Post Office box. Process servers have a number of ways to locate your real address, and in many states they can actually serve you by sending to your PO Box. I do process serving on the side, and in most states is very simple to find you this way.

Answer 3

It's not much effort to garnish wages for credit cards from the prosecutors end, not only that, they can actually intercept your income tax return when you get any back! Sure, by the time this court date is scheduled, much of or all of the debt can be paid and will either be postponed for a later date for review and give you more time to pay the rest if they see you are making an effort.

Answer 4

The garnishment of your wages depends on the professionalism of the agency you are dealing with.

If you try to shirk their debt AND they know the following:

(1) You have a job whereby you earn wages above the poverty-line level;
(2) The name and address of the employer;
(3) How to file the necessary paperwork with the county clerk of the court system who has jurisdiction over your civil liability;

Then they can request a hearing to get the garnishment. It may be cost prohibitive at first but INCOME is INCOME.

Everyone thinks they are above garnishment until they see actual deductions from their paycheck.

Answer 5

If your wages are garnished, the creditor gets paid off the top. They can take up to 25% of your income once the court gives the judgement in their favor. Yes, they can and most WILL if you are not paying them. Collection agencies are paid by the amount they collect. Trust me, if they can get the garnishment... they will.

Answer 6

With a court judgement yes. They have to prove that you owe they debt, the original creditor gave them permission to collect on the debt, and that the statue of limitations has not passed.

Answer 7

They can collect, garnish, etc for any amount owed.
Even $5.
Since they also sue for court costs, it doesn't cost them any more to sue you for $5 or $5000.

Answer 8

Michelle is right, a good debt settlement company can obtain a substantial savings for you.

Answer 9

They can garnish your wages no matter how much it is. They want there money.

Answer 10

Yes and they will. They don't care how long it takes just as long as they get their money