Does it ever end?

[carol1206]

What is the name of your state? New Jersey

In 2003 I had my paycheck garnished because of an outstanding credit card debt that the ex had neglected. Being that I was the primary cardholder, I got stuck with the debt. The orginal amount in collection was in the area of $2500.00. For over two years, 10% of my weekly gross income was garnished from my check. Finally in November of 2005, the amount was paid in full.

In February 2006, I received a letter from the collection attorney that I still owed $109.72 in interest that accumulated on the original debt during 2003-2005. I was under the impression that once this debt went to collection all interest stopped. Am I wrong? Needless to say,I got no results from the collection attorney, and so once again I'm back to having the paycheck garnished and will end up paying nearly twice the $109.72 after everyone gets their share. Next thing I know, I'll get another letter saying I owe interest on the interest. HELP!!

 

[Chien]

Q. I was under the impression that once this debt went to collection all interest stopped. Am I wrong?

A. Yes, but that question doesn't go to the real issue

Similar fact situations have been posted here before. I never understand how they occur, but you may have to look at the court file to determine for yourself.

When a writ is issued to enforce a judgment, including by wage garnishment, it should show the amount of the judgment AND the amount of post-judgment interest to be collected to satisfy the judgment. So, for example, the writ should show a judgment of $X that earns post judgment interest at Y cents per day.

When that's served on your employer, it's the employer's obligation to withhold and remit $X + (Y times days). Once that is done, the judgment is fully satisfied.

Your garnishment started in 2003, so judgment had to have been entered in 2003 or before. Even if it was entered in, for example, 2001, the garnishment that started in 2003 should seek recovery of $X + (interest from 2001 to 2003) + (Y times days).

I can't understand from your post why interest from 2003 to 2005 wasn't being included in the sum being deducted (unless the attorney neglected to request post-judgment interest in the first place). If the attorney did that, I don't know if you've got grounds in your state to petition to be released from the new garnishment. Satisfaction of the original garnishment should be Satisfaction in Full.

I haven't found the loop-hole in your procedural rules, and it's likely that you'll only find out what happened by checking the court file.

(And you can't collect interest on interest.)

 

[carol1206]

From the information I received from the attorney's office, I tend to believe that they did not include post judgement interest. They were very rude and obnoxious and told me that "this is the way it works, you defaulted on this account and now pay the consequence". How do I go about getting a copy of the original court order?

 

[Chien]

It's in the court file. You can go there and read and get a copy or for a few cents, you can probably have a copy sent to you. Call the court and ask.