Garnishing Wages, How Does This Work
I owe money to a credit card company and I owe on a bank loan for a car, I also have a small claims court ruling against me for the summ of $1800. I have not put any money into my bank account since all went down hill for me (read "should I claim bankuptcy or not" thread). And have kept it at $1 to keep it open, do I need to worry about this? Thanks
Gyva...
I could be wrong but I think garnishment is that monies are deducted from your paychecks. Just like payroll taxes, it is taken out from your gross payroll before the check goes to you. I don't know how that works if you do not have a job, though. I am sure there are some export here who can answer.
O yes, I know they take money from your checks before you get to cash them but I was wanting to know what will prompt them to take this action or if they will even bother?
Gyva...
paycheck garnishing takes place when the person or company to whom you owe money initiates a court hearing to get that money back.
At that time, you have alrady defaulted on the item (Car, watch, etc.).
This will cost the person money in legal and court fees. Most people and companies do not go the route of garnishing wages.
Most of the time, if they aren't being paid on a regular basis they will write off the money owed as a loss. Especially if they haven't gotten their product back.
Sounds crazy, but in the case of cars...before they repossess, sometimes they report the car stolen, especially if you are not cooperating with the collectors or the lender. I guess it's added incentive to turn it in.
if your car loan was with the bank that you have the $1.00 in it, the bank technically has the right to off-set. This means that if you have enough money in the account (probably more than $1.00) then they can go in and take the money.
Your bank account can be garnished as well. If this were to happen, they would deduct monies owed and send them out.
In your case, the question of why would they bother? come up... (In a bank's eyes, it is a SMALL amount that is owed.)
Good luck
i never heard of an individual being able to garnish a paycheck, b/c in my limited knowlege, they must subpoena your employer to see how much you make, then come up with the payments from that. i don't know of an individual being able to gain this info from an hr department - nor directly from your bank. the only way would be if you just told them your salary or account #. i doubt the account idea account though, unless you had something set up on auto-drafts - which is always a terrible idea. haha.
also, even if you go on unemployment, they could take it from there as well as your tax returns.
hope i shed something useful.
Gyva,
IF YOU WANT A STRAIGHT FORWARD ANSWER....
...readON
Don't declare BANKRUPTCY
Get a second job...pay THEM off!
STAND HIGH...and MoveOn..
YOU WILL FEEL GOOD ABOUT YOURSELF...
....as always,
GoodInvesting, Rocky
excellent advice.
do the right thing.
karma is a powerful thing.
Will
Quote:
On 2003-08-03 00:46, jackman wrote:
i never heard of an individual being able to garnish a paycheck, b/c in my limited knowlege...
Individuals usually hire companies to handle garnishes. My first garnish is happening now, I believe that the company handles the paperwork and take a cut.
Quote:
On 2003-08-03 16:25, 2000rock wrote:
Gyva,
IF YOU WANT A STRAIGHT FORWARD ANSWER....
...readON
Don't declare BANKRUPTCY
Get a second job...pay THEM off!
STAND HIGH...and MoveOn..
YOU WILL FEEL GOOD ABOUT YOURSELF...
....as always,
GoodInvesting, Rocky
Amen! Do the right thing. Ask your lenders for time to get on your feet and pay them back. Your credit report will thank you.