Guarding against garnishment when your employer requires direct deposit?

[Diesel73L]

So for the first time in my life I missed a credit card payment-it was due last Friday. I will miss two more this month (I had a total of three cards), and now I'm just waiting for the calls to start. I made sure I "updated my contact information" with all creditors prior to default, downloaded six months of statements, etc... I spoke with one attorney who said that I'd probably get sued in three or four months-we won't be able to file for CH7 for six or seven months. Can I fend them off that long on my own? Will I need to involve an attorney? Unfortunately I work for the federal government and direct deposit is a requirement, so all a creditor would have to do is call up Uncle Sam to get my bank account information. Is there anything else I can do to slow down the process in order to keep them from getting anything before we file? We have plenty of exemption and want to hoard as much cash as we can so that we can start over post discharge.

[Freddy03]

I was sued, lost and had federal wages garnished. I'll pull up my case and give you a timeline in a little bit. I personally think you will be safe for 7 months.

[DesdemonaB]

So for the first time in my life I missed a credit card payment-it was due last Friday. I will miss two more this month (I had a total of three cards), and now I'm just waiting for the calls to start. I made sure I "updated my contact information" with all creditors prior to default, downloaded six months of statements, etc... I spoke with one attorney who said that I'd probably get sued in three or four months-we won't be able to file for CH7 for six or seven months. Can I fend them off that long on my own? Will I need to involve an attorney? Unfortunately I work for the federal government and direct deposit is a requirement, so all a creditor would have to do is call up Uncle Sam to get my bank account information. Is there anything else I can do to slow down the process in order to keep them from getting anything before we file? We have plenty of exemption and want to hoard as much cash as we can so that we can start over post discharge.

Hi Diesel

You might be little confused on how a wage garnishment works - say you were sued and lost the plaintiff would submit to the court a writ of garnishment to your employer once signed that employer has to reply that they receive it and what date they will start the garnishment that's it, your employer also has to inform you that they received the WofG and what date any garnishment will start. They do not provide the plaintiff with banking information as that would be a violation of the Privacy Act of 1974. Unless the plaintiff subpoenas your employer or plaintiff is law enforcement your employer must keep personal information private.

Most OC use your payment history, paper check or electronic transfer information you used to pay your bills to get your banking details. A court ordered WofG must be submitted to the bank and most of the time it's name and ss number in hopes of hitting all bank accounts tied to your SS.

I too think you could be safe at 7 months and good luck.

[Freddy03]

Stopped paying - Dec 2009
Civil Suit Served - May 2010
I answered suit and requested documents - May 2010
Response to my request - Aug 2010
Motion for Summary Judgment - Aug 2010
I requested Hearing - Aug 2010
Hearing set for October 2010
Hearing cancelled and set for Jan 2011
Judgment awarded - Jan 2011
Writ of Garnishment issused - March 2011
First check garnished - June 1 2011


So you can see it takes a long time if you answer the summons.

Good Luck!

[Diesel73L]

Thanks-that makes me feel a lot better.

[shark66]

If 6-7 months is all you need, I'd say that you're most likely safe from garnishment.

You might have to do some legwork at one point or another - answer the lawsuit or what have you - but your sailing should be a smooth one overall.

Good luck to us all.

[GoingDown]

See the "Exempt Funds" sticky above. I think there is a link in there to more info about pre-paid debit cards. You could have your wages direct deposited to a pre-paid debit card, and they would be unlikely to get at it, unless you told them about it, or unless your employer told them about it.

And just remember, no matter what you decide to do-- whether you use your checking account or a pre-paid debit card-- never leave more money in it than you can afford to lose once someone gets a judgment against you. Drain your accounts and keep as little in them as possible, so that if someone seizes them, they won't get much, and you'll still have enough cash to get by for awhile.

And yes, if you'll be filing bankruptcy fairly soon, you are probably safe from garnishment. Especially if you answer the lawsuit and drag out the process for as long as possible.

[GoingDown]

Stopped paying - Dec 2009
Civil Suit Served - May 2010
I answered suit and requested documents - May 2010
Response to my request - Aug 2010
Motion for Summary Judgment - Aug 2010
I requested Hearing - Aug 2010
Hearing set for October 2010
Hearing cancelled and set for Jan 2011
Judgment awarded - Jan 2011
Writ of Garnishment issused - March 2011
First check garnished - June 1 2011


So you can see it takes a long time if you answer the summons.

Good Luck!

What I love about this is that the collection attorney spent all this time on this lawsuit and still probably never got a penny from any of his or her efforts. That is cool.

[Freddy03]

What I love about this is that the collection attorney spent all this time on this lawsuit and still probably never got a penny from any of his or her efforts. That is cool.

They did get about $800 from garnishment (total $1600 but I was able to get $800 back b/c it was deducted after filing) still not much considering I requested everything under the sun from them and made them show up to court....lol