I am being sued for debts I cannot pay. The court ruled I am liable for the principal but not the interest on the amount owed. The credit card company and I go before an arbitrator the end of February. My only income is my social security checks each month. Can the legal system garnish these wages which are already under the national poverty level?
2006-12-23 05:11:14 · 5 answers · asked by ? 6 in Business & Finance ➔ Personal Finance
I don't think they can garnish SS checks. I'm almost positive they cannot. They can however put a lein against your home and/or car. I don't think they will get a warm fuzzy feeling after meeting with the arbitrator though. As another poster suggested be sure you know exactly what your expenses are when heading in to arbitration. The credit card company has already written this off, so they are just hoping to get lucky and discover you've been hiding a big treasure chest of loot from them.
Your new mantra for arbitration is, "I can't even pay my bills now." The Credit Card company will probably be stuck unless you're hiding any assets.
2006-12-23 09:14:44 · answer #1 · answered by KC 4 · 0⤊ 0⤋
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2016-10-08 07:29:40 · answer #2 · answered by Kendall 3 · 0⤊ 0⤋
I'm not an attorney, but I have had some dealings with arbitrators (in a labor relations setting). i would recommend that you list your expenses, mortgage/rent, car payments, maintenance and fuel costs, insurance (home/car/medical/personal/other) premiums, utility (electric, gas, water, telephone, Internet connection, etc.), taxes (property, other), food and drink, and any other expense that you may have or can think of.
Total the expenses, then list you income - SS Disability, interest ro bank accounts, dividends from stock, insurance policies, wages (if any), and all other income (excluding gifts).
Compare the two. if there is a surplus, ask the creditor if they will take half; if there is a deficit, ask where is the money going to come from?
Be sure you have analyzed the expenses, to where you can "agree" to reduce expenses to pay your debt. Is that Internet connection an essential part of your life? Can you reduce travel, thereby spending less on fuel?
If you have made a "good faith" effort to address your legal financial obligations, I think that the arbitrator will view your situation with a sympathetic eye and, depending on the amount of debt and when it was assumed, may come up with a minimum payment plan.
However, if you ignored your obligation, failed to notify the credit card company of your situation, attempted to work out a mutually agreeable payment plan, but forced them into suing you (and causing an unwarranted expediture of company funds ) then the arbitrator may take a harsher view.
2006-12-23 06:41:29 · answer #3 · answered by PALADIN 4 · 0⤊ 0⤋
They definitely can't garnish your social security. If they tell you they can, it is a threat. You should tape record the calls and see an attorney.
2006-12-24 04:06:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
no they cant take any money from your social security.
can't take anything else either it is unsecured debt.
2006-12-23 20:17:12 · answer #5 · answered by daniel_97202 5 · 0⤊ 0⤋