My husband and I are going to file ch. 13. I am in RE sales and have recently had four closings which is unusual as the market has crashed. So, I have made too much money and have to wait 4-6 months to file BK to let those sales fall off as they cause severe damage to our means test and repayment plan is unreasonable. (based on last six months of income). In the meantime we have sturggled to but have paid all our cc cards on time except two large cards. My husband has made minimal payments (50-100, etc. not the required payments) over the last six months. After leaving the BK attorney my husband called the two companies to try and work out acceptable terms. One card is Chase. They made us pay 500.00 that day (money we did save to pay our BK attorney but did not have too) and wanted him to agree to 540.00 per month for six months and they would lower it from there and hold off on legal action. I told him that is impossible but that is what was set for now. It had been transfered to their legal dept. (they have there own). The following week, the 26th we were served a summons. I know we have to reply. It makes me mad that they proceeded on as they said they would hold off due to our arrangement. I have been surfing the site trying to look for a guideline to respond to the summons. I know we can't deny or disbute the debt as it is ours. I would like to reply with an affordable payment plan (more like 200.00 a month) to work on repayment. Of course in 5-6 months we are filing BK anyways. I just don't want them to garnish my husbands wages for some outrageous figure like 540.00 per month. We can not afford that much and I am worried. I left a message with our BK attorney and have not heard back. I was wanting other suggestions as I really dislike attorney's (plus don't have any money). I am not sure he would look out for our best interest. Any input from experienced memebers would be appreciated. Carrie
If the judgment is allowed, and they proceed with garnishments, wages in most states are garnishable for 25% of net earnings. You should figure out what that amount would be and try to work a payment arrangement off that amount.
Do they take your financial situation into consideration (monthly expenses,etc..)? Money is a BIG problem right now. Illness in the family and a son just sentenced to prison has really beat us down as well. My attorney's office just replied and said ruffly 200.00 to prepare response to the summons. They said they can buy about 30-60 days time. No other info but to come into the office with the paperwork.
Do you really want to spend 200.00 to the attorney for filing an answer that you can do yourself for no charge? It's up to the judge how much they will allow to be attached. I've never had a debtor contest the garnishment, with financials, so I've always gotten state limit, usually 25% of net pay.
I had my wages garnished after hurricane Katrina. The creditor claimed they sent warnings, notices, etc., but the mail wasn't running and the area was in chaos. They do NOT care what expenses you have. It's taken from your disposable income. The only way to get this amount reduced would be to possibly ask the judge for a reduced amount (not sure what the process is) claiming a financial hardship due to the garnishment. Good luck to you.
They do not take 25% of net income.There are certain deductions that are allowed and then they can take out the required % after that.
Certain deductions... like taxes... They don't cordially invite you to fill out an expense form. What "deductions" are you talking about?
Title III also protects employees by limiting the amount of earnings that may be garnished in any workweek or pay period to the lesser of 25 percent of disposable earnings or the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage prescribed by Section 6(a)(1) of the Fair Labor Standards Act of 1938. This limit applies regardless of how many garnishment orders an employer receives. As of September 1, 1997, the federal minimum wage is $5.15 per hour. "Disposable earnings" is the amount of earnings left after legally required deductions (e.g., federal, state and local taxes, Social Security, unemployment insurance, and state employee retirement systems) have been made. Deductions not required by law (e.g., union dues, health and life insurance, and charitable contributions) are not subtracted from gross earnings when the amount of disposable earnings for garnishment purposes is calculated.
You have to remember some posters on this board do not have the debtors best interests at heart.They work for ca,s.They will post things to scare or confuse you.Stating they can garnish 25% of net earnings is not being truthful.There are some foxes among us hens.You can increase the size of your federal and state taxes to decrease the amount they can garnish from your pay.For every action there is a reaction.Poster 9 and poster 4 speaks volumes as to what to watch for on this board.
collectman has disclosed the line of work he is in. His posts are valuable in presenting both the perspective from the debt collector's viewpoint, and based on his knowledge, experience, and the legal advice he has received regarding compliance in his own business. He is (probably) not collecting from YOU, and if you are involved in a collection problem, it may be important to consider all sides and possible solutions.
I did make a mistake in my earlier post, I inadvertently stated 25% of net wages, I didn't realize I typed "net". While I can say to the debtor, if I have every intention of taking them to court, and have the job information, that their state allows 25% of wages to be garnished. I did not say that that is the amount that will be garnish, I simply conveyed to them the amount state law allows and give them the law that states such.
Why would a ca visit and post on this type of forum?Seems collectman typed net by mistake on two different post look at post #2 and post #4.I rest my case.
