How can a creditor garnish my wages?

How can a creditor garnish my wages, even though I have a debt management program?

6 Answers

I was layed off and I had to stop paying my credit cards, acquiring a few debts. I fell behind on so many things that it's taking me time to try to catch up.  A debt collection firm sued me for an old debt that I was unable to pay in full.  I received the Special Civil Part from the courts and I responded taking all responsiblity for my debt. The courts sent me a date to appear in court.I had received a small check and in good faith decided to call the firm to see if they would take that as a settlement. They insisted in getting more and I complied, eventhough it put me at a disadvantage financially. The thought of going to court makes me very uneasy, I find many  lawyers are trained to intimidate and I was trying to avoid the Court appearance because of this. I agreed to pay a down payment (which they've already cashed) and a monthly settlement, which does appear on the consent judgement that they sent me. They submitted the consent judgement to the Superior Court and copies for my signature. I'm very nervous signing this judgement because I feel I'm signing off all my rights. In the event that I default on my loan it states that a wage execution shall be issued without further notice. In the event that the plaintiff elects to docket this judgment in the Superior Court, the terms of this order shall remain in effect. I'm a littlle lost with this verbage and about now I'm thinking that I probably should've kept the trial  date and let the courts decide. I'm going to pay my monthly debt but afraid that if I'm ever layed off, I'm giving this firm the permission to take my livelihood, this is my concern. At this point I don't know what my opitons are, has the trial date been removed since the lawyer's offfice has sent them a letter of settlement?  or are they waiting for my signed copies of the consent judgement to be able to execute? should I call the Superior Court to see if I'm still scheduled to show up? HELP...I'm not good at this stuff, I just want to pay my debt without the politics and scrutiny. Thanks 

A creditor can certainly garnish your wages. This has happened with me. Citi bank has garnished my wages even when I was in a DMP.

Are you sure that the debt management company has rightfully negotiated with your creditors? Moreover, were you served any summons before the garnishment? Did you get any notice on a lawsuit? No creditor can garnish your wages without suing you and wining the lawsuit.

Only as the debt negotiation agreement between the creditor and the credit counseling agency did not occur at the right time and in the right way, the creditor will be able to garnish your wages. They can still sue you anyway.

A debt management program can't protect you in case a creditor chooses to sue you for the debt. You are possibly getting sued because the negotiations between the DMP and the creditor didn't work out amicably.

A creditor has the right to sue you at any time regardless of a debt management plan.   Once they sue you, then they can go ahead and file for garnishment.  DMP's will not/cannot prevent this.

How to Deal with Illegal Loans..OhioGal's Primer
PDL's are ILLEGAL in the following states...
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states

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