avoiding garnishment

I would request validation from the CAs first. If they can't prove you owe the debt then why pay it. Do a search for validation letters.

Greg

 

Avoiding Garnishment.....Live in PA!! LOL!!

No Garnishment here allowed!!

Tac

 

Do what the other poster told you. Do your homework first and then demand validation. But don't agree to pay them anything.

 

First, understand the process. Noboday can garnish from you unless they have a judgement from you. And even then, in my experience, very few of those who have judgements actually follow through and garnish. I've had a few judgements, but none of them have ever gone to the trouble of garnishment.

So for now, unless you have a judgement, nobody can garnish.

Also, in my experience, very few collectors actually pursue getting a judgment. I've had $8500 charge-offs that never tried to get a judgement out of me. I never paid them a dime. That was 5 years ago and recently sent them a validation (nutcase) letter and they deleted the TL on all 3 of my reports!

In my opinion, this is the best course of action;

First, learn how to control collectors. The FCRA is on your side for the most part. If a collector is nagging you, learn about Cease and Disist letters. They work wonders. It's basically a put-up or shut-up. Once received, they can't contact you any more and try to collect. (Well, one last time is allowed, but most don't even do that). Then, each collector and/or OC has to decide how to proceed. They can't keep bugging you. And if you refuse to pay, then they either have to a) write it off as a bad debt. or b) seek a court judgement. Most choose A. Then you are just stuck with credit repair tactics - trying to get this bad mark off of your credit.

For those who seek option b), you can still prevent it. Offer a settlment at the last minute. We did this years ago with some of my wife's old charge-offs. We said it was either they accept our settlement or we file BK. We weren't really going to file BK but it's enough of a threat that it makes them want to settle for pennies on the dollar. Something is better than nothing. We settled all of her accounts at 30%. So keep this in mind.

Next, remember that even if you issue a Cease and Disist order, you can still keep making small payments. But now on YOUR TERMS! Just mail them whatever you feel like every month. They can't bug you now. But again, like some others said here, try the Validation approach first. No reason to pay if they can't validate.

Now, suppose you have an account that DOES validate and so you start making $20 a month payments. That's great! As long as you are making anything CLOSE to a reasonable effort, they no judge will issue a judgement against you because you are making regular payments. And most companies know this - so they don't bother to sue. $20 a month payments can stop even a $8K debt from going to court. Of course, you'll be paying for a dozen years. But, this at least keeps the collector or OC at bay for a while until you can settle or pay it off.

Speaking of paying off debt, don't ever pay off an entire balance. Well, maybe if it's less than $500. But otherwise, always go for a settlement. And there is a trick to settlements - the longer it's been since you made a payment, the more they will negotiate on a settlement. Aim for 30-40% when settling. Sometimes, you can even get less.

There are some debts that just aren't worth paying sometimes. We've had numerous $100-400 "small" collections over the years. We never paid them. We disputed them later. They came off of our credit reports. Nobody's gonna sue you for $213.00. Don't worry so much about those small collections.

In summary, pay what you can afford to pay. I am not saying just to skate out on all your debts and don't worry about it. I am just saying, YOU CAN BE IN CONTROL OF EVERYTHING. You choose what and how much to pay. And don't let them bother you. Chances are, you'll have some credit repair to do later. But it can be done. And it's not all THAT hard. Stay tuned to this board.

 

Only about 20% of all judgments nationwide are ever collected on.

 

I had one for $32,000 and they never came after me. I guess that is because they knew better than to try a dumb stunt like that.

 

Don't ever bet on that. I've seen them sue for exactly 18 cents and I can prove that.

 

That is just plain ludicrous.

I would love to have someone sue me for 18 cents. I would drag it out in a legal battle that would end up costing them thousands of dollars to fight, and then offer a settlement of the entire 18 cents spread out over a 10 year extended term.

 

That is exactly what the judge who heard the case in Oregon thought too.

That one cost them thousands of dollars too. Don't remember whether the judge fined them or just how the case went but it cost them about $8,000. I'll bet they don't try that dumb trick again any time soon.