How does it all work?

[dn4192]

What is the name of your state? Indiana

I am being sued in small claims court for a past credit card debit. I understand I owe the debt and want to pay it off, but the collection company wants full payment and won't settle for setting up payments. Now I am looking at going to small claims court to settle it. What can I expect to happen at the hearing? What do I need to take with me? If garnishment is decided, is automatic what the amount will be, or will any information I provide effect it?

 

[dcatz]

All counties in Indiana are required to publish and provide a Small Claims manual explaining the proceeding and procedures. All are basically the same, and you can find an example here:
http://www.in.gov/judiciary/pubs/handbooks/small-claims-manual(2005).pdf

If you acknowledge the debt and can’t work out a payment arrangement before going to court, there is very little that you need to take or that is likely to matter.

Garnishment does not immediately and automatically follow entry of judgment. There may be a “Hearing Supplemental”, where you will be required to return to Court and answer questions about your assets. However, if you expect a wage garnishment or bank levy, you should learn about what exemptions you might be able to claim. You can do that here:
http://indianajustice.org/Data/DocumentLibrary/Documents/1054438385.93/0105liens.pdf

And you must file a Court form called an “Exemption claim and Request for Hearing” to have the Court rule on any exemptions that you claim.

 

[dn4192]

No possessions

I don't own anything outside of the car I am paying on. I have other things of any kind of value, and rent the place where I live. After my "base" bills are paid each month, it leaves me about $400-450 to live on for food, gas and such. When it comes to garnishment, is it automatically the 25%?

 

[dcatz]

No, that's going to be the top limit, and that's where the exemptions come in.
Please review them and get the form from the Court. It may have more specific information to assist you.
While Indiana is not my state, generally speaking, you'll probably find that you can protect all of what is are the "necessities of life" - i.e. what is required to subsist. I don't know what you are lumping under "base" bills, but food, gas and vehicle maintenance, healthcare coverage and prescribed medications and clothing are the types of monthly expenses that would normally be included, in addition to rent.

 

[dn4192]

Base Bills

I consider base bills to be:

Rent
Electric
Water
Cable
Heat (gas)
Car Payment
Car Insurance payment
Student loan

When I add all those up, it takes about 70% of my monthly pay. The remaining 30% goes to food, gas and such which varies. Also, while reseaching, it says garnishments can be no more then 25%. Can a judge rule for it to be less then 25%?

 

[dcatz]

Please review my prior response. The 25% is going to be of discretionary income - that which is not subject to exemptions.
I didn't think I had need to go back and try to review the specific exemptions and had left that to you but, as a general matter, everything on the list except, perhaps, the cable would qualify as an exemption against the 25% in most states.
If you read the Court form to apply for an exemption hearing, I think it may give you a better understanding of the theory and purpose of exemptions and how they affect the amount that can be garnished. Theoretically, sufficient permissible exemptions could reduce the 25% to 0.