Can a creditor garnish my wages if I had a loan from 2001 that is not a student loan, but used for school?

Question

I got a phone call today from a creditor stating that they were going to garnish my wages if I don't pay this. I have never gotten one bill for this and thought it was consolidated with my student loans, but confirmed that it was a personal loan. I don't know where to go with this. It was taken out in 2001 and some people are telling me to wait the seven years and it will drop off and others are saying that they can garnish my wages. One credit bureau shows this under positive history and the other shows negative. Please help!!!!

Answer 1

They may be rigth, but you'll be able to manage something because the loan is so old.

Make them a final offer. 25% of the loan, cash, today. They should accept. Make sure you talk directly to the lender, as a lot of collection companies are buying old debts and try to collect them. They'll never go in court because it doesn't worth it.

Good luck !

Answer 2

Any creditor can arrange to garnish your wages if they go through the right legal process. Sometimes they're just threatening but sometimes they mean business. Try to find a good credit bureau that will help you mediate or negotiate with this creditor (and any others you may not know about).

Look for "credit counselling" or "debt management" services in your area, wherever that is. They can help you arrange reasonable (affordable) payments and avoid wage garnishment.

Answer 3

Garnishment requires receiving a judgement that can be submitted to the employer. If you did not reply to anything in the past and they sought a judgement that you did not show up to contest, they might be able to do this.

Answer 4

If it was a legitimate loan that you actually took and didn't pay, then yes they can sue you for it, and if they get a judgement, can garnish your wages.