clueless with garnishes plus some

[turtle82]

What is the name of your state? Iowa

Ok how to make this short-
I had an accident 5 years ago and had many surgeries and bills throught the last yrs. i went to court 2 years ago and ended up being screwed by the people (even the judge and defense saw me winning crazy story ne way) so i have a medical bill for about $4000. that ended up in my name. (the rest are in my fathers because i was underage for most of them). Well i offered to pay 10$ a month, cuz thats all i could afford (which i couldnt even afford that) and they said that wasn't good enough and sent it to collection which then sent me a thing to go to court and plead guilty or not. i checked guilty because i do owe this money and thought they'd want to know that when i went to court, well they just sent me the piece of paper back with an interest rate written on it. Now some months later i recently had a garnishment from my bank, they took the only 43$ i had in my account. i dont even know how they got my bank information. on the instructions for garnishment theres a chart for computation tables non consumer credit and it says: if the employees disposable earnings are less than- a. $154.50 for a weekly pay period (and then b, c, d,) pay the employee as if his pay check were not garnished. What does that mean? To me it seems they shouldn't have been able to take anything. Also, why are they going to my bank? I am self employed and an employee for my father. Wouldn't they go to me personally or to my dad as my boss to garnish from my paychecks etc? In addition to all this i recently consolidated my credit cards and have that as a new bill, i am seriously condidering bankruptcy if this keeps going this way, and if i file chpt 13 what happens to all my debts? Sorry so long im really confused and need any advice. Thank you!

 

[JETX]

"if the employees disposable earnings are less than- a. $154.50 for a weekly pay period (and then b, c, d,) pay the employee as if his pay check were not garnished. What does that mean?"
*** Though your post is not clear, it would appear that the judgment creditor is/has attempted to garnish your paycheck. The calculations you mention are to determine how much, if any, of your check is exempt from the garnishment. Simply, anything you make over the amount will be paid to the judgment creditor until the judgment is paid.
Simply, Iowa exempts the following wages from Garnishment: "75% of disposable earnings per week, or an amount = to 30 x federal minimum hourly wage, whichever is greater."
The $154.50 you show is 30 times the min wage (of $5.15 per hour).

"To me it seems they shouldn't have been able to take anything."
*** Of course, that makes no sense at all. You even admit you owe them, so they expect to get paid.

"Also, why are they going to my bank?"
*** Because they can. Siezure of non-exempt funds in a debtors bank account after obtaining a judgment is allowed by state laws.

"if i file chpt 13 what happens to all my debts?"
*** Once you file, the process of collecting your debts stops. You must then go through the process of completing the bankruptcy and, after reviewing your case, the court will determine how much you are ordered to pay your creditors. You will then make your payments to the court, who will pay the creditors on a reduced basis. After 3 to 5 years, you will emerge with all of your pre-bankruptcy debts discharged.

 

[turtle82]

Well what i meant by not thinking they could take anything at all was because i dont make $154. a week, not that they couldn't take anything cuz obviously i owe them. Thank you much for the information!

 

[Ladynred]

The minimum only applies to paychecks, it does not apply to money sitting in bank accounts. Its not all that hard for them to find your bank account and anything you put in that account now will go directly to the court/judgment creditor.

Why would you file CH 13 ??

 

[JETX]

I can barely pay my mortgage with the little bit that is left over from the current garnishment!

Please don't hijack someone elses thread. It is both rude and caused confusion when you think a response is to you when it is directed to the OP.

Please delete your post here (click on post reply and then delete) and start your own thread.