Deductions??? (Desperate)

[jlromeo2]

What is the name of your state (only U.S. law)? Kentucky

I am working on trying to clean up my debt. Debt collection law agencies keep calling me and threatening to deduct from my salery. (1) Are they allowed to do this. (2) Can they do this even though I already have deductions for child support?

Thanks

[seniorjudge]

They will be able to garnish your wages if they get a judgment against you.

[TinkerBelleLuvr]

Debt and Bankruptcy Laws -- Kentucky

WAGE GARNISHMENT EXEMPTION: 75% of disposable income or 30 times the federal minimum hourly wage, whichever is greater


MAXIMUM INTEREST RATE: Legal: 8% Judgment: 12%


STATUTE OF LIMITATIONS ON ENFORCEMENT:

Open Account (credit card): 5 years
Written Contract: 15 years
Oral Contract: 5 years
Domestic Judgment: 15 years
Foreign Judgment: 15 years

http://www.bcsalliance.com/debt1_kentucky.html

The child support order will take precedence, so the amount they can garnish will depend on the amount that is already being deducted from your check for child support.

[TinkerBelleLuvr]

Kentucky has some fairly simple 3rd party garnishment procedures once a judgment has been received. The steps are shown at: [url="http://www.overdue.com/Garnishment_Statutes/ky.html"]http://www.overdue.com/Garnishment_Statutes/ky.html[/url]

Further, as for wage garnishment, Kentucky allows the following wage exceptiongs:
75% of disposable income or 30 times the federal minimum hourly wage (whichever is greater)

Finally, a judgment in KY is valid for 15 years.

Bottom line, if the creditor(s) get a judgment, it will be good for 15 years, they can file a lien on your property, they can take the non-exempt wages, plus charge costs and fees, plus 12% annual interest. All in all, not a good position to get into.

One final note on property liens: If your home is homesteaded and your residence, a lien will not force it's sale. It will force you to pay the outstanding fees and costs if and when you decide to sell the property.

http://forum.freeadvice.com/consumer-bankruptcy-2/garnishment-26764.html