Citation to Discover Assets to Third Party

[marcumw]

What is the name of your state? IL

Original credit card debt - $7000. I leaned about 5 days ago that our good friends at Asset Acceptance LLC want $10,000 garnished from my wages via the citation to my employer.

(1) Is it worth getting an attorney to help SETTLE (My credit is decent so bankrupcy is not an option).

(2) Is there a way to settle this BEFORE someone from payroll has to go to court on 4/5/05? (This is my biggest concern)

(3) What is a "typical" settlement offer?

(4) What kinds information is my employer required by the court to provide?
(a) I have direct deposit, so will payroll have to provide my checking account number? (b) Could they freeze my account or touch my 401k??

Thanks!

 

[Debt Guy]

Different status use different words - I am not familiar with the use of "citation" as part of an asset hearing or a granishment process.

At an asset hearing, you must appear and answer all questions about your income, bank accounts, assets and the like.

I've never heard of an employer being compelled to appear at a hearing of this nature. Usually, if there is a garnishment, the creditor merely presents the garnishment order to the employer after the court has granted the garnishment.

They can garnish your wages -- they can grab roughly 25% of your take home pay.

They can garnish your bank account and wipe it out.

They cannot attach your 401k.

In some states they can place a lien on your home but generally they cannot force a sale.

If you have decent income, you are behind the 8-ball on this. You probably can't file BK because of your income.

Your ability to settle and the amount of the settlement will depend on your ability to negotiate. An attorney or a debt settlement company could help with the negotiation. Send me an email if you would like a recommendation on either.

In my experience, typically AAC is going to want a lot from you since they already know that you don't have a lot of choices. If they garnish, they will collect 100%.

I'm really curious what all this means.

 

[marcumw]

So Asset Acceptance generally prefers the garnishment route to get ALL of the $$ rather than settle upfront for less? Would there be any legal ramifications should I choose to quite my job and find employment elsewhere (I'm due for an extended vacation).

 

[Debt Guy]

I don't think that was what I said. I did not mean to give you the wrong impression.

Any judgment creditor will try to get the most they can. The creditor will try to make a decision if they get more money by settling or by garnishment.

You would do the same if you were in their shoes.

Would you really quit your job just to avoid a garnishment? I don't know the answer but that is the question they will ask themselves.

If you did quit your job, they would just garnish your new employer.

Your challenge is to convince them it makes sense to settle. I was only trying to say they have more experience at this than you do. Get some help.

 

[marcumw]

The "Creditor/debtor" attorneys I spoke with (via findlaw.com) were less then helpful once they learned I was NOT in the market for bankrupcy.

 

[Debt Guy]

send me an email

 

[Ladynred]

Does ASSet already HAVE a judgment against you ???
Were you served with a summons and Complaint ??

 

[marcumw]

Yes they have their judgement (way back in 2001) and they have only recently been able to track me down. Of course I never recieved the summons because I had moved out of state, and was never AWARE of the judgement because it never showed up on my credit report.

Summary here-->
https://forum.freeadvice.com/showthread.php?t=229981

As I stated before my credit is good, so bankrupcy is not an option. Can an attorney delay the garnishment, or perhaps assist in snagging a lower settlement?