Can a debt collector garnish my wages or bank account?
If you don’t pay a debt and the creditor sees their only way to collect is to take legal action, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.
Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order, and generally only a maximum of 25% can be garnished (laws differ from state to state, and some states prohibit wage garnishment entirely).
If you are enrolled in a debt settlement program, often, even though creditors may threaten a law suit, it will not be carried out because funds have been set aside to settle the debt. In most cases, even if a law suit is filed, the creditors are still willing to settle the debt for less than the full balance and would prefer that outcome over pursuing legal action. Keep in mind that your creditors simply want money, not a legal battle. A settlement on an account is in most cases more cost effective than wining a judgment in court since even with a judgment, the creditor still has to pursue collection efforts to get paid.
Q: What types of debts are covered under the Fair Debt Collection Practices Act?
Q: Can a debt collector contact me any time or place?
Q: How can I stop a debt collector from contacting me?
Q: Can a debt collector talk to anyone else about my debt?
Q: What information does a debt collector have to provide about a debt?
Q: What practices are not legal for debt collectors?
Q: Can a debt collector garnish my wages or bank account?
Q: What benefits cannot be garnished?
Q: Where can I report a debt collector for an FDCPA violation?
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| Our Program | Debt Consolidation Loan | Credit Counseling | Minimum Payments |
|
| Total Unsecured Debt | $30,000 | $30,000 | $30,000 | $30,000 |
| Months To Pay Off | 46 | 60 | 60 | 433 |
| Interest Paid | None | 12% | Variable | 18.99% |
| Monthly Payment | $498 | $667 | $855 | $900 |
| Total Est. Cost | $22,950 | $40,040 | $51,300 | $80,619 |
* The above numbers are an example of past performance and are not intended to be a guarantee of any future settlement results.
