FTC Disclosure:

I am not paid or compensated in any way to write product reviews posted to this blog. There are affiliate links posted throughout this blog. So, when you click through on links and buy something, I may receive a commission. I pay for the products with my own funds. Product reviews always reflect my own experience with and honest opinion of the product as a consumer.

Thursday, April 14, 2011

Can a Collection Agency or Other Creditor Garnish Wages?

The simple answer is yes. However, the collection agency can’t just go out on a whim and garnish wages. They have to follow the rules of the game. The collection agency must properly file a lawsuit, ensure that the debtor is properly served a valid summons and/or complaint for lawsuit and then win a judgment against the debtor. A summons is a court issued notification to the debtor that he or she is being sued and must appear in court. Most of the time a summons is served by a process server or a local sheriff’s officer. Wage garnishments for local, state, or federal taxes, student loans, and child support do not require a court order or lawsuit. Unfortunately, the tools at a creditor’s disposable doesn’t stop here.

Once a collection agency receives a judgment, it can record the judgment and a judgment lien at the clerk of court office. A judgment lien is attached to any real property of the debtor and certain personal property. When the property is ever sold, some of the proceeds of the sale can be used to pay the creditor that obtained the judgment lien. Recorded judgment liens can last up to 20 years in many states and can also be renewed. In addition, judgments are public record and are often reported to credit bureaus.

Now, if a collection agency wants to garnish wages and bank accounts after winning a judgment, it has to file documents through the court to do so. Depending on the debtor’s state of residence, the collection agent is generally permitted to garnish up to 25% of net wages from a paycheck. The debtor will receive a notice from his or her employer or bank if this going to occur. This is a bit of a digression, but Uncle Sam can take more than 25% if back taxes are owed to the IRS. The state can take more if child support payments are garnished.

The worst thing that a debtor can do is to ignore a lawsuit summons and fail to respond and/or appear in court. If this happens, then congratulations: The debtor has essentially handed the creditor a default judgment on a silver platter. Afterwards, the debtor won’t have much legal recourse, unless it can be proven that the lawsuit is invalid or the debtor was not served lawsuit papers. State law gives the debtor a specified amount of time to respond to a complaint by filing an answer.





Copyright 2011-  www.thewhimsicalmusingsofsusan.com

No comments:

Post a Comment

This blog is moderated. Please do not spam this blog. Any comments that include promotional links will be deleted. Thanks.

Labels

2013MTV Video Music Awards (1) 3G network (2) 401k (1) 4G network (2) advertisements (1) Air Wick Freshmatic Ultra Odor Detect Spray kit (1) Alberto VO5 2-in-1 shampoo + conditioner (1) Android (1) anti-aging skin care products (1) antioxidants (1) Aquaphor Healing Ointment (1) ATand T Flash mob commercial (1) Autozone (2) Aveeno active naturals 1% Hydrocortisone Anti-Itch cream (1) baby wipes (1) bad boss (1) bad job interviews (1) badmouthing (1) balance transfer (1) Bank of America (1) Bank of America $410 million lawsuit (1) Bank of America overdraft class action lawsuit 2011 (1) Bank of America scam (1) bargain shopping (17) Bayer Contour USB Blood Glucose Meter (1) beggars (1) Bic Soleil Bella razors (1) Biore pore unclogging scrub (1) Blendtec comparison (1) Blueberries (1) braids and weaves (1) Breville Juice Fountain Compact BJE200XL (1) buying habits (1) buying stuff off the streets (1) Caitlyn Bruce Jenner (1) call center (1) Car buying (1) car maintenance (1) Car salesman (1) Celestial Seasonings Sleepytime Extra Tea (1) cell phone (1) child abuse (1) Christian hypocrisy (1) collection agency (1) college debt (4) colon cleanser (1) complaining about your job (1) compression stockings (2) compression therapy (2) consumer credit counseling service (1) corporate corruption (1) corporate lobbyists (1) Cosmetic Surgery (1) count your blessings (1) coupon basics (1) coupons (21) credit card (1) credit card debt (1) Creme of Nature Replenishing Sheen Spray with Argan Oil from Morocco (1) CSR job (1) customer service (4) Customer service representative (1) cutting your grocery bill with coupons (2) CVS (16) CVs 100% Organic Cotton Tote Bag (1) CVS ExtraCare Rewards Program (16) CVS Green Bag Tag (2) Dax Pomade (1) dead snake in the grass (1) dealing with cockroach infestation (1) debit card fee (1) debt (1) debt collection (1) Debt Collectors (1) debt consolidation (1) debt consolidation loan (1) debt settlement (1) difficult people (1) Digital Coin Counter (1) distracted driving bicycling and walking (1) doctor (1) Dodd-Frank Wall Street Reform (1) Dove Damage Therapy Intensive Repair Conditioner (1) Dove Damage Therapy Intensive Repair Shampoo (1) Dr. Scholl's Advanced Comfort shoes (1) Dr. Scholl's gel insoles (1) dumb spending habits (1) Durbin Amendment (1) education (1) Effects of Type II Diabetes and High Blood Pressure on the Kidneys (1) emotional baggage and trauma (1) employment (4) employment issues (5) Extra strength Benadryl Itch Stopping Cream (1) Extrabucks (4) Fair Debt Collection Practices Act (1) Family and money (1) family disputes over money and property (1) fast food (3) Federal Income tax returns (2) Femininst Movement (1) Ferguson (1) fibroids (1) fiscal cliff (1) fishing pier (1) Florida (1) Florida beaches (1) Florida living (1) Florida tourism (1) Florida travel (1) food allergies (1) foot pain (1) free coupons (1) FTC (1) Futuro Energizing Ultra Sheer Knee Highs for Women (1) Games that Men Play (1) garnish wages (1) get fired (1) get free coupons in the mail (1) Ghetto people (2) Gillette Daisy Razors classic (1) Gillette Venus and Olay Razor (1) Going natural (1) Google (1) gratitude (1) hair care (4) harassing bill collectors (1) harassing phone calls (1) harassment by bill collectors (1) health benefits (1) health benefits of juicing (1) Healthcare system (1) higher education (4) higher taxes (1) home equity loan (1) homelessness (1) Hot Shot MaxAttrax Roach Killing Powder with boric acid (1) hotels (1) hotels.com (1) How to deal with a cheating spouse (1) How to Keep Your customer service job (1) Huggies Natural Care Thick N Clean (1) hurting feet (1) illegal debt collection (1) Individual Retirement Account (1) interest rate (1) internet (2) Interracial dating and relationships (1) IRA (1) Is the Ninja blender any good? (1) Iyanla Fix My Life (1) Iyanla Vanzant (1) job interview (1) Johnson and Johnson (1) junk food (2) knowledge (1) L'Oreal Youth Code (1) La Quinta Inn and Suites (1) lactose intolerance (1) Lady Speed Stick Invisible Dry deodorant (1) lawsuit (1) learning (1) lending money to family (1) let go of toxic people (3) LG Optimus V Android Smartphone (1) lingere (1) local calling (1) Lysol Disinfectant Spray (1) make money online (1) manipulators (1) mass transit (1) McDonald's McCafe Stawberry Banana Smoothie (2) medical (1) Metro PCS (1) Miley Cyrus (1) mindset (1) MO (1) money (1) Money Saving Jar (1) muscle soreness (1) Myoflex Odorless Pain Relief Ointment (1) Natural hair care (2) natural treatment fibroids (1) natural ways to shrink fibroids (1) Nature's Secret Ultimate Cleanse (1) never miss a golden opportunity to shut up (1) New Balance Walking shoes (1) New Thought movement (1) Ninja NJ600 Bender (1) Ninja Professional Blender NJ600 (1) Nivea Kiss of Flavor Cherry Tinted Lip Care (1) Novatel Ovation MC760 USB Modem (1) Nutella Hazelnut spread with cocoa and skim milk (1) nutrition (1) Occupy Wall Street (1) online paid surveys (1) Organix (1) Organix hydating Moroccan Argan Oil Creamy Oil Body Wash (1) overdraft fees (1) OWS (1) pain relief (1) Panhandlers (1) panties (1) passenger trains (1) pay negotiation (1) paying for college (2) payroll taxes (1) pest control (1) plastic surgery (1) polyphenols (1) Pompano Beach (1) poverty (1) problems with the church (2) Product Reviews (46) Prosperity Gospel (2) Prosperity Pimp Preachers (1) protests (1) Pterostilbene (1) Public schools need improvement (2) public transportation (1) Publix (1) Purpose Gentle Cleansing Wash (1) Rachel Dolezal and transracialism (1) Raid Max Bug Barrier with Auto Trigger (1) random (1) Ratchet behaviors (1) Reality TV (1) Register Rewards (1) relationships and dating (1) religion and Christianity (2) respect for patients (1) retinol (1) retirement (1) Review of Aveeno Active Naturals Skin Relief Calming Lotion with Cooling Action (1) review of Cascadian Farms Organic Cinnamon Raisin Granola Cereal (1) Review of Dawn Hand Renewal with Olay Beauty (1) Review of Gain Ultra Antibacterial Hand Soap/Dishwashing Liquid (1) Review of Kashi TLC Chewy Granola Bars (1) Review of Lever 2000 bar soap (1) Review of Monster Energy drink (1) review of Special K Protein shakes (1) Review of Suave Advanced Therapy Body Lotion (1) Review of Toshiba Satellite laptop L505-ES5018 (1) review of Virgin Mobile Broadband2Go (1) roach infestation (1) roaches (1) Robin Thicke (1) Roc Retinol (1) Roc Retinol Correxion Deep Wrinkle Serum (1) Roc Retinol Correxion Sensitve Eye Cream (1) sabotage in the workplace (2) Sandra Bland (1) saving money (16) saving on groceries (1) scam artists (1) scams (1) Sears (1) sexual harassment (1) shopping (16) shopping haul (16) skin care (6) skincare (2) smartphone (1) smoothies (1) So Delicious coconut milk unsweetened (1) social media (1) Social Security (1) SoftSheen Carson Sta-Sof-Fro Hair and Scalp Spray (1) spider veins (2) squandered legacy (1) Stank of America (2) stolen property (1) student loan (3) student loan default (1) stupid people (2) submission in relationships (1) surgeon (1) T-Mobile (1) Taco Bell Frutista Freeze (1) technology (1) telephone sales (1) the dangers of milk and eggs (1) The Law of Attraction (1) The Secret (1) The shooting death of Mike Brown (1) the value of a college education (1) TLC Extreme Couponing show (1) Tom's of Maine Long Lasting Deodorant (1) toxic people (4) toxic relationships (1) Traction Alopecia from wigs (1) trains (1) transgender issues (1) transitioning to natural hair (1) travel arrangements (1) travel booking (1) Tri-Rail (1) TV commercials (1) U by Kotex (2) U by Kotex Clean Wear Heavy Flow Pads (1) U.S. Department of Educastion (1) underwear (1) varicose veins (2) vicarious liability (1) Victoria's Secret (1) Victoria's Secret sale (1) Virgin Mobile TopUp Card (1) Virgin Mobile Wireless (1) virtual dating and courtship (3) Vitamix comparison (1) Walgreens haul (1) Walmart (2) wasteful spending (1) wasting income tax return money (2) wasting money (2) ways to earn money online (1) ways to make money (1) ways to make money when you don't have a job (1) wealth (1) Wells Fargo (1) what are coupons (1) What is ghetto? (2) Wheat thins (1) Wheat thins commercial (1) Where to buy Ninja blender? (1) where to find coupons (1) White male dominated establishment (2) why are people so mean to children? (1) Why do women forget they are wearing a tampon? (1) Why I Don't Go to Church (4) Why you should not allow others to drive your car (1) Wild Growth Hair Oil (1) Winn-Dixie (1) wireless service (2) Women's rights (1) workplace assholes (2) Workplace racism (1) workplace sexual harassment (1) X Factor (1)