collections and wage garnishment?

[jaredakelly]

i have a bunch of collections recently on me and my wife's credit report due to lack of money and hardening economic times. we are obviously getting creditors and collection companies calling. i have a bit of knowledge when it comes to this but obviously not enough. i had one creditor threaten legal action and possiblly wage garnishment. is this possible. the collection is roughly around 2-3k and we are in california. i know it is there job to get into your head but can they do this? i would assume they wouldn't because they have bigger fish to fry and that it would cost more in legal fees than the actually collection amount. thanks in advance

[annajosie]

If your creditors get a judgement on you, they can garnish your wages as well as your wife's. They can also freeze your bank account.

Please do not assume that they won't do it because the amount you owe isn't that much. They certainly can do it and probably will do it.

[jaredakelly]

Originally Posted by annajosie

If your creditors get a judgement on you, they can garnish your wages as well as your wife's. They can also freeze your bank account.

Please do not assume that they won't do it because the amount you owe isn't that much. They certainly can do it and probably will do it.

i've never heard of it happen and it has never happened to myself in the past. not to say it can't happen but what would make you think that they probably will

[Antigone*of*Greece]

Originally Posted by jaredakelly

i have a bunch of collections recently on me and my wife's credit report due to lack of money and hardening economic times. we are obviously getting creditors and collection companies calling. i have a bit of knowledge when it comes to this but obviously not enough. i had one creditor threaten legal action and possiblly wage garnishment. is this possible. the collection is roughly around 2-3k and we are in california. i know it is there job to get into your head but can they do this? i would assume they wouldn't because they have bigger fish to fry and that it would cost more in legal fees than the actually collection amount. thanks in advance

You are much better off attempting to negotiate a payment plan. If the collection agency is actively working this debt, it is not going to go away. The cost to sue you is not so outrageous that they would look for bigger fish. In fact depending on the circumstances, your account may be seen as a slam dunk. A second fact to add is that you would pay for the costs to sue you.

In california your wages can be garnished up to 25% and your bank accounts can be levied.

[jaredakelly]

what i dont understand is that i've heard of many many people with CC collections with much higher balances and absolutely no judgements of any kind. believe me if i could pay these i would but i just dont have the money. i'm not just letting them go because i'm a deadbeat and am trying to screw the system

[Antigone*of*Greece]

Originally Posted by jaredakelly

what i dont understand is that i've heard of many many people with CC collections with much higher balances and absolutely no judgements of any kind. believe me if i could pay these i would but i just dont have the money. i'm not just letting them go because i'm a deadbeat and am trying to screw the system

That was never implied. I just gave you facts. Don't be surprised when it does happen.

[jaredakelly]

Originally Posted by Wirelessany1

That was never implied. I just gave you facts. Don't be surprised when it does happen.

understood......

i guess my problem is i dont understand why they would pursue this when they could get the larger collections. do i have no rights or chance to defend? people go into collections all the time, does that mean they all have had judgements and wage garnishments?

[debtcollector`]

Originally Posted by jaredakelly

i would assume they wouldn't because they have bigger fish to fry and that it would cost more in legal fees than the actually collection amount. thanks in advance

Don't worry. You will be billed for their legal fess too. You may want to start thinking about what you can do to pay this. You and your wife can sell plasma, collect refundable cans, sell your couch. There is always an opportunity for someone willing to see it and work for it.

DC

[wyett717]

i guess my problem is i dont understand why they would pursue this when they could get the larger collections. do i have no rights or chance to defend? people go into collections all the time, does that mean they all have had judgements and wage garnishments?

They will collect debts from whoever owes them, it doesn't matter how big they are. Smaller debts are just as easy, if not easier, to collect than large ones. As wirelessany1 said, it is probably a slam dunk. I'm not sure what rights you are questioning, or what you need to defend.

[Chien]

OP, I’m just adding a similar note because yours is already a recurring theme. It’s likely to become more so. I’ll add “amen” once. You said it yourself: “hardening economic times”. I find it surprising that you claim to know of those with larger CC debt who have escaped suit, but let’s assume that you do. In the not-too-distant-past, the creditors’ waiting line was two-deep and debtors were better prepared to make payment proposals. Now it may be five-deep, there are fewer proposals and creditors want to be at the front of the line, not the back.

Pay attention to DC and Wirelessany1. Creditors regularly sue on debts your size. It would cost $225-$250 to file and serve both you and your spouse. Not only would that cost be added to a judgment, it would be added on again in the form of post-judgment interest within a year. Your incredulity that “they would chase the small fry” won’t prevent it. Inaction based on that belief may assure it. Making and keeping arrangements to pay down that relatively small debt may prevent it. There are bigger fish in the sea, but you have to take the initiative to make sure it’s not worth the effort to come after you. Otherwise, you just get caught in a skein net.

Of course you have rights and would have a chance to defend. But you haven’t mentioned a viable defense or the fact that it will cost as much as the debt to go through empty motions. It’s much better to avoid it. If you don’t, these are exemptions that you can try to claim:
[url]http://www.courtinfo.ca.gov/forms/fillable/ej155.pdf[/url]

And your form for wage garnishment exemptions:
[url]http://www.courtinfo.ca.gov/forms/fillable/wg006.pdf[/url]

And the financial statement you’ll have to file at the same time:
[url]http://www.courtinfo.ca.gov/forms/fillable/ej165.pdf[/url]

[Dougthegreat]

Originally Posted by jaredakelly

i guess my problem is i dont understand why they would pursue this when they could get the larger collections.

Because it is the primary revenue model of a collection agency - buy debt at a discount, and then make money garnishing wages of people who aren't paying the bills. Call it unfair if you like, but remember - you're the only one who reneged on a contract, everyone else is just doing what they're allowed to do to get the money they're owed.