I have a notice that my wages will be garnished if I don't make a payment plan with the attorney for creditor. I have tried making payment arrangements and they said all or nothing. Is that legal and any advice?
4 Answers from Attorneys
Do they know where you work or bank?
If not they can't gsrnish you.
Did they serve Summons / Complaint?
Call or email for assistance
Yes. It is legal. A creditor and/or its attorney has no obligation to accept a payment plan on a debt that is owed and they may proceed to a judgment and seek creditor's remedies that include garnishment.
There are limits under state law on the amount of your check that can be garnished (basically, you get to keep 3/4th or $290 per week, whichever is more for you, less for the creditor).
Also, if you receive "relief based on need" your wages are off-limits to creditors.
These limits apply to most contract debts (i.e., not child support, not taxes, etc.).
You don't say the amount of the judgment; that may make a difference in how you proceed. But, generally, if you cannot work out a payment plan with the creditor, and if your wages can, in fact, be garnished, and it is enough to cause you to default on other debts, you need to consider a chapter 13 or a chapter 7 bankruptcy.
Hello. It would appear to be 'legal', but of course full information would need to be known by your personal attorney. In the event that your wages are garnished, know that there are limits to the amounts that may be taken, as well as other protections that may be available pursuant to governing law. Please do confer privately with an attorney as to your personal issues and needs.
Tricia Dwyer Esq
Tricia Dwyer Esq & Assoc PLLC