Question:
Debt collection agencies & future paychecks
I have been unemployed for awhile due to illness, and I am currently over a
year past due on some medical bills and credit cards. The total amt. of
debt is close to $8000. I am currently living with a friend (who is
helping me survive financially) and therefore dont have a phone # or address
registered in my name, so I have been fairly successful in avoiding all the
collection agencies that are seeking payment from me.
My question is this.....when I go back to work within the next couple
months, will all these collection agencies be able to garnish my wages once
my SSN pops up on their radar due to receiving a paycheck? Or is this
something that only a court can do once the collection agencies obtain a
judgment lien against me? I've heard judgment liens can be won by
collection agencies even though I am never served a subpoena to appear in
court for these debt collections...is this true? If collection agencies can
win judgments against me, how much of my paycheck will be garnished...is it
a percentage or a fixed amt. of money based on my total debt?
Answer:
They would have to serve notice on you and get a default judgment.
Depending on your State the rules for service vary from requiring
confirmation that you were physically served, to sticking a notice on
the door or mailng a letter to your last known address.
As to garnishment, some States prohibit any wage garnishment at all, and
others have restrictions that may apply to you.
The maximum in any State is 25% of your net pay . Most States exempt the
first 30X Fed. min wage from that deduction.
