Goingdown, You made me chuckle! I was jsut thinking the other day how 25%wage garnishment in my case has been a breath of fresh air compared to the 45 - 60% I was paying on unsecured debt and student loans per month.
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Thanks for the advice. Once we get through this, we will be great. We are paying $500 per month in past due federal taxes and $500 per month in past due state taxes from 2006-2007. With these tax payments, the high cost of rent in Alaska and if they take 25% wage garnishment, I also have a $200 per month student loan bill and without me having an income - on my husband's income only, we will have barely anything left.
Can they take a TOTAL of 25% if there are multiple suits?
I was under the understanding that due to student loans and taxes not being dischargable, that I should keep paying federal and state tax payments while going through this, right?Comment
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The only ones who issued me a summons was Chase. They are the worst. Everyone one else charged me off after 6 months of non-payment and sold my debt to junk debt buyers. I sent each one a validation request letter and never heard back. So then I find out that Chase did not send me the summons, it was a bottom feeder lawfirm named Mann-Bracken who took me to arbitration 'supposedly' on behalf of Chase and won. Well we all know now that arbitration is a scam and it's seriously being looked into. So when I got the judgement, I got scared because I did not know back then what I know now and so I filed for Ch 13 and guess what, they released the judgement. So then the same debt got all bought up by some yo-yo's named Round Up Funding who are out like $35,000. The reason to go to court is that when junk debt buyer owns your debt, the chance of them having all the documents they need to prove the debt is yours are like 1%. So you show up at court and ask the judge for 'Discovery' and the lawyer for the JD buyer doesn't have it and it gets dismissed. And that's that. FYI-Most original creditors don't sue debtors, it's the debt buyers who do for some reason. But maybe now with everyone not paying, they feel they need to sue as there are too many of you out there!!!!Comment
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The taxes you probably want to keep paying. In terms of student loans, if these are government guaranteed loans and you default, they can get a garnishment order without any court proceedings. Garnishment for student loans is 15% of take-home pay. Once these are in place, they do not expire as many garnishment writs will. So, if you have a 15% student loan garnishment, this only leaves 10% available to other creditors. This creates yet another argument for getting creditors to work with you. I believe you can even get a voluntary student loan garnishment agreement if you default. I'm not sure of the details, but there is some information out here on the web that can offer advice.
I would guess the last thing you need is an IRS garnishment, so it is probably best to keep paying the IRS debt, until youa re within a few weeks (maybe a couple of months) of filing.Comment
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Hi Tree, always look forward to how you are doing with your venture.
A friend that I spoke of in another thread is going your route also due to high salary.
Question for you.....if you default on a student loan and go for the voluntary garnishment (his state only allows 15%) does it make sense to do that to hold off wage garnishment from another creditor, since only one is allowed at a time?Comment
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My sister told me she knows two different people in the middle of foreclosure. One of her friends has been there for 12 months without paying anything. Another person has been there for 18+ months without paying.Originally posted by InDebtNeedHelp View Post
A lady at my wife's work has been at her house for 12 or 13 months without paying a dime as well.
If I could manage to stay in my house rent-free for 18+ months, that would help me get back on my feet BIG TIME!!!
The mortgage & associated fees are what's keeping me down. I need bill-relief for a year or two so we can pay off a car or something.Comment
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A friend of mine sent me this link tonight that talks about beating a collection lawsuit. Very good stuff in here.
http://www.attorney-in-alabama.com/not-pay-debt.html
Many of you have probably seen my long list of 49 people that I owe money to. Lots of credit cards, repo's, medical bills, etc. Most of this is old debt dating back to the early 1990's... JC Penny, Discover, HSBC, Chase, Citibank, Capital One, Wells Fargo... you name it.
Not once has any of them ever taken me to court in over 15 years. You should have heard many of the screaming matches I've had with numerous CA's over the years. For the first time since the early 1990's, I've finally been able to calmly answer the phone and happily give the people my bankruptcy attorney's information and tell them to always call there regarding my account. Talk about a huge weight being lifted off my my shoulders.
If, by chance, that any of these people did come after me, I would most likely do pretty much what it says in the link above. The guy who sent it to me is also contemplating BK. He owes about $20k or so in unsecured credit card debts, so me and him talk over the phone about bankruptcy and creditors almost on a daily basis.Comment
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I'm not sure how one goes about a "voluntary" garnishment related to student loans. I've only heard about this. I do know that you first have to default before any serious action can be taken. I believe this is about 270 days from last payment. If I were going to go this route, I would want to start making phone calls as soon as possible to see how to get plugged into the process. Once a student loan wage garnishment begins, it does not expire and has preference over any other writs that come later.
In some states, writs don't expire and this could be problematic if the guaranteed student loan is waiting in the queue. However, once the GSL garnishment begins, it has preference until it is paid off, or you bring the outstanding past due amount current and rehab the loan.
If you are in a 15% max garnishment state then it is probably the case that no other writ can be enforced once the GSL garnishment is in place. One would need to perform their own due diligence with respect to their state statutes. The department of education's website has some very useful information related to student loan garnishment. At one time, I found a standard form that is used. It was included in an online instruction booklet. I'll see if I can find it. If so, I'll post the link in a new thread.
BK is a tough decision for high-wage earners with no assets but large student loan payments. Since for most of us, the student loans are deferred for the five years of a 13 plan, the interest can grow substantially.Comment
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If anyone is worried about getting wages garnished, move to Texas. That's a garnish-proof state.Comment
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If your old debt is from the 90's, why are you even paying it? It has gone past the statue of limitations.Originally posted by debtmonster View Post
Also, I have a question about garnishments and the 90 day writ. I don't understand that. Can someone explain it to me please? Thanks.Comment
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I meant Statute, not statue. LOLComment
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Who said I'm paying it? The debt is there and doesn't go away. They hound you as Zombie debts forever until you file BK on all of them.Comment
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In some states, writs of garnishment expire after a fixed number of days. In my state, a writ of garnishment expires 90 days from the date the writ is served on the employer. If the amount of debt cannot be satisfied in the 90 day period, then the plaintiff must have another writ served on the employer.
Multiple Garnishments:
Again in my state, if other writs come in while a current writ is taking all 25%, then these get in the queue but also expire after 90 days. However, if a writ comes into the employer and it cannot be paid on due to current writs, the employer must notify the plaintiff when the other writs expire. This gives the plaintiff a reasonable "guess" as to when they can serve another writ. This is all about timing for plaintiffs who are up against a debtor with multiple writs of garnishment. I hope this makes sense. Garnishment laws vary by state.
Google: "garnishment expiration by state" for more information
By the way, once a student loan garnishment is in effect it is enforceable in all states, including non-garnishment states such as Texas.
A large judgment of $5000 - $12000 can stall out all other writs for 90 days. In the case where a debtor has a student loan garnishment, this can lead to only 10% available for any other garnishment. If a debtor has IRS, child-support, etc types of garnishment that never expire and take over 25% of disposable income, then it could be a long, long time for any other writ to be enforced.
In such cases, a creditor/plaintiff might agressively go after other assets, but even then, this seems somewhat unlikely and costly if it turns out the debtor has no other assets other than wages.Comment
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Garnishment of wages for debt, student loans, and/or taxes? All of the above?
Originally posted by debtmonster View PostComment
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Just do what I did. Keep changing jobs every few months and move from state to state. I did that since 1995. I must have moved almost 20 times since then. Then you don't have to worry about garnishments and stuff. It's too hard to garnish someone who can't stay put. I am living proof!Comment
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