i just recently received letters saying i was being sued by two creditors,and if i dont answer they were going to take further actions. does that mean garnishment.
2006-11-26 12:57:35 · 8 answers · asked by bonitat 2 in Business & Finance ➔ Credit
They will need to win a judgment in order to garnish your wages.
Further action means they may sue you.
You should attempt to settle or structure repayment before it gets to that point.
Here is a good resource to help you: http://www.expert-credit-advice.com/debt_settlement_service.htm
Here are the garnishment procedures listed by state: http://www.expert-credit-advice.com/wage_garnish.htm
Again, it would be wise to do something before they do!
2006-11-26 21:23:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, they can. But you're not at that point yet.
Your creditors are wanting you to try to make arrangements to pay them before they continue the litigation process. If you make no effort to make these arrangements, be prepared to go to court. Even then you have another chance to make some kind of payment plan.
Garnishment only happens when a creditor wins a judgment against a debtor and they still don't pay. The creditor will petition the court for a Writ of Garnishment and deduct the maximum percentage from your check. Every state has their own laws on garnishment. So it can vary from state to state how much they can take, if any.
2006-11-26 22:26:35 · answer #2 · answered by Celeste 6 · 1⤊ 0⤋
A creditor can garnish your wadges but they have to get a court order and you end up being liable for all the court costs try to make an arrangement with them and honor the agreement. The other way I have heard you can make a minimum payment each month of $5.00 and they can't do anything however this would probably increase the debt by 3 years. Don't send them a payment from your bank account in the event they go in and attach your account get a new bank account. Try to make a payment agreement with them they may even reduce the debt and ask how it will show up on your credit report a future employeer may not like a bad credit report on you/ If you make an arrangement with them get it in writting before you agree to anything.
2006-11-26 21:19:20 · answer #3 · answered by petersenmarilyn@sbcglobal.net 1 · 0⤊ 0⤋
Yes, creditors can garnish your wages. You would be wise to work out a minimum payment schedule with them. If necessary and possible, you could then look into filing for bankruptcy. However, I once worked out a payment schedule with a law firm working for a creditor, and after they received the first check and knew my bank account number, they took the rest of the small amount in my account so that checks written on household bills bounced, costing me a lot of bank fees. So if you work on a payment plan, pay with money orders. If you can't pay anything, you have to be making a minimum income that leaves you protected from garnishment.
2006-11-26 21:07:21 · answer #4 · answered by Edie B 2 · 0⤊ 0⤋
Received is different than being served. If you were served by a sheriff for example, you will need a lawyer. However, if you "received" a letter in the mail, then it's a collection letter, and further action could be another letter. If it were that easy every creditor would be garnishing wages instead of writing off debts. It's not. They have to get a judgement, and even then they have to collect it. You will know about it every step of the way. There are laws in this country preventing people from taking things that aren't theirs. But first things first.
The first thing is to stop them from calling and writing you...UNLESS they are going to sue you. No useless threats. Send them a C&D letter and tell them to "cease and desist". This means don't contact you again...only if- and it's a big if- they are going to sue you.
Next: usually in the letter they send you it will say something like "unless you dispute the validity of this debt in 30 days". Well, write them back and tell them you do dispute the debt. Even if it's outside the 30 days, send the letter. Tell them you will get a lawyer and sue THEM if they don't prove the debt is yours. All you have to say is, in the second part of the letter, is "I dispute this debt, prove to me it's mine". If they can't, you're done. If they can, they will have to take many more steps to sue you. At that point you can hire a lawyer to send an answer. But at this point they're just trying to scare you.
So in summary, write them telling them to "cease and desist" AND to "validate the debt". Those are your rights under the FCRA and FDCPA.
2006-11-27 10:28:23 · answer #5 · answered by Kevin K 3 · 0⤊ 0⤋
Yes they can.They can take a good % of your pay.Who did you receive the letter from a lawyer or a collection company if a collection comp.they might be bluffing,they have to take you to court before they can get any thing.You have to answer if you don't in the time limit they don't have to do anything all they have to do is go to the Judge and they will get your money.Do you owe the money if so work out a payment plan.Get a lawyer and start bankruptcy the only to options you have.The creditors will work with you,but you got to make the payments.Don't sound good but if you owe you got to pay.
2006-11-26 21:10:52 · answer #6 · answered by Douglas R 4 · 0⤊ 0⤋
Depends on the circumstances but in general if you lose a lawsuit they can garnish your wages and attach any bank accounts etc. IRAs and retirement accounts are exempt.
This is why it is a good idea to pay your bills.
2006-11-26 21:08:56 · answer #7 · answered by Anonymous · 0⤊ 0⤋
They will take you to court, and yes, they can garnish your wages.
2006-11-26 21:06:31 · answer #8 · answered by Leda 2 · 0⤊ 0⤋