Wage garnishment and judgements

[s_a_b_b_a_t_h]

What is the name of your state? Maine
O.k. went through 2 different debt reduction companies back in 2001. Both really messed up credit. Snowball effect from these 2 companies and i just did not make enough to pay debts and lates. I lived in California at that time.
I now live in Maine. I have one abstract judgement from Citibank for $4500. My wife and I have several other charge-offs and credit card debts. We both work at Walmart.
I have read that wage garnishment can only happen for credit card debts after a court judgement. Am I correct? If so, then Citibank may try to garnish my wages. However, will they need to transfer the account to a Maine company to proceed with garnishment? Or can they just submit to Walmart directly?
Also, due to the account and judgement both originating while I was a California resident, which state laws will Citibank follow?
Lastly, we have comtemplated bankruptcy for months now, however we are going to be mortgaging a home in Maine next year(right now, due to our terrible credit we are paying a mortgage through owner financing; no bank involved) what are the chances of getting a bank mortgage if we filed bankruptcy?

Thank You

[Ladynred]

I have read that wage garnishment can only happen for credit card debts after a court judgement. Am I correct?

That is correct - no judgment, no garnishment allowed. If the judgment was rendered in CA, it would have to be MOVED to ME before they could do anything.

what are the chances of getting a bank mortgage if we filed bankruptcy?

Pretty good, but the interest rate post-BK is likely to be pretty ugly. If you could put off the mortgage for at least 2 years while you clean up your credit and rebuild it, you'd be better off as far as rates go.