Credit Card Wage Garnishment, possibility.?

Question

I know how the process works, but my situation is that I was in OK, thats where the suite is filed by the American Express Blue, but I work in TX now.

1- Can I tell them that I dont work anymore do a search.
2- Since the case is filed in OK district court, can they enforce a TX based company to get the wages garnished?..

Answer 1

I agree with Studly and that Debt Guru covered the answer.

But the KEY words are - "If your primary residence is in TX"
If your primary residence is in Oklahoma and you "only" work in Tx, then they can, and would, legally go by Ok laws and not Tx.
If you have moved to Tx and set up a primary residency in that state - home ownership/rent (and when I say rent it's not daily/weekly/month to month renting), utilities in your name, all mail sent to your Tx address, etc., then they would have to domesticate the judgment to Tx to take any actions - though like the others said, it is hard to recover anything on a judgment in Tx

Also, if they get a judgment against you, telling them that you are not working is not the wisest thing to do. The penalties for that could very well cost you far more than the original judgment along with possible jail time

Answer 2

No they cannot garnish your wages in the State of Texas even if a judgement has been filed against you in another state.If your creditor is proceeding under state law, it will need to have obtained a judgment against you prior to any wage garnishment. In that case, the limitations and procedures of the garnishment will be governed by state law so you cannot have a garnishment from OK sent to Texas. Good job on the move :)

Answer 3

Read Debt Guru's answer, it covers everything very well.

Because of Texas's laws, they have the lowest recovery rate for unsecured debts in the country. It's very hard to recover when you can't garnish wages or go after property.

They do not use the judgment laws for the state it was filed in.....they can not be enforced in another state. But what they can do is transfer this judgment to your state. This is referred to as filing a "foreign judgment". Many of the states have agreed to honor judgments from other states, and do allow the creditor to collect them, but inder the resident state's laws. So you are in luck because of Texas's pro-consumer laws.

That does NOT mean you should ignore the lawsuit and not fight it. Do not let them get a default judgment if you can prevent it.

Answer 4

A judgment is a judgment... so yes.

You probably can still settle... save up 60% of the money, call the law firm, and offer them as a settlement to avoid the garnishment. Get any agreement in writing.

Answer 5

If your primary residence is in TX then the following applies. Then cannot cross state lines with that ruling. Here is an article that is provided to our current debt settlement clients looking to clear up old debts and avoid possible BK or lawsuits and settle the debts.

For Texas debt settlement clients, their wages and home are completely protected, which gives the creditor even more incentive to settle. Given the fact that creditors already have every incentive to settle even with clients who reside in states with less favorable debtor laws, Texas debt settlement clients are in an even stronger negotiating position with their creditors. What does this actually mean? Typically it means even greater protection in the event of a lawsuit and greater savings than what is typical. Let me explain.

Although the vast majority of cases settle, as anyone who has ever read a debt settlement contract will tell you---it’s impossible for a debt settlement company to guarantee that a client won’t be the target of any legal action by their creditors. After all, creditors are always reserved the right to sue debtors to collect a past due account, regardless of whether the consumer is taking any action to resolve the outstanding debt.

In the event a creditor sues a consumer in court and wins a judgment, they’ll usually go about executing the judgment in one of the following ways:

1) Wage garnishment---contacting your employer and asking that they set aside a percentage of your wages every paycheck until the debt is paid back in full. (It’s illegal for an employer to fire you for this unless more than one creditor is garnishing your wages).
2) Lien on your property---obligates you to pay back the creditor with any proceeds from the sale or refinancing of the property. A creditor prefers to put a lien on your home since it usually increases in value over time, which means the proceeds from your home’s sale will be higher, and thus they’re more likely to actually get paid back.
3) Seizing your bank account---contacting your bank, showing the proof of judgment, and asking to withdraw any monies held in deposit under your name.

Fortunately, Texas laws protect debtors from having their wages garnished (unless you authorized in writing to allow your creditor to garnish your wages) and entitle Texas consumers to 100 percent homestead protection in the event of a lien. (Note: this does not apply to tax liens, alimony, or contractor’s liens.) One downside, however, is that bank accounts are not exempt under state law. That being said, for most consumers who are drowning in credit card debt, there probably will not be much for the creditor to seize anyway, and if so, it’s unlikely that it will constitute enough to decline a settlement offer. On top of that, bank account information can be difficult for creditors to locate, unlike your home, which is public record.

In sum, these are major advantages for Texas debt settlement clients. Keep in mind that the vast majority of cases are settled successfully regardless of the legal advantages of the consumer. When you consider Texas state laws, debt settlement makes even more sense for the credit card companies, debt collection agencies, and most importantly, for the consumer.

Answer 6

A judgement is a judgement yes they can