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Saturday January 19th 2019

Can Credit Card Creditors Garnish Salary from Debtors?

Hi Gilbert!
 
I’m an author of a blog entitled “The Romantic Dragon”. Basically, the site which had just started, focuses on social issues, such as unemployment and related areas. The blog also features daily paying jobs and cheap housing options for the destitute. 
 
I’m wondering whether you would have any ideas to the query below which is on my blog  .
 
If you could give me some comments there, I would personally much appreciate it.  Thank you.
 
Warmest regards,
Manfriday
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The Enquiry -
 
Hi Manfriday
 

How does the garnishment work? E.g. Creditor issues a warrant which enables the creditor to collect the amount directly from the debtors employer OR from the debtor’s bank account once amount has been credited into it by the employer.

Recently, I met up with a friend of mine who had some credit card problems. It was also to my understanding that the problem had started recently perhaps 2 years back and he had made arrangements to pay for them. This he did and managed the repayments with minor misses. But, in the course of his repayments, his salary was also garnished forming a large percentage. In response,  I further thought -
 

  • Can a salary be garnished from joint accounts holders?
  • How does the garnishment work? E.g. Creditor issues a warrant which enables the creditor to collect the amount directly from the debtors employer OR from the debtors bank once amount has been credited into it by the employer. .
  •  

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    The Reply from A Legal Counsel

     Dear Gilbert

     Effectively, when salary is placed into an employee’s account, it is considered as part of the employee’s account and not strictly salary. In that sense, the money in the account can thus be garnished. The law does not allow salary strictly to be garnished.

     For joint account, usually it would not be garnished unless there is a clear indication for example pursuant to an order of court to say that a certain percentage of the joint account belongs to the debtor. The part that belongs to the debtor can be garnished.

     Regards

    James (not his real name)

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    The Official word

    How wage garnishment works – www.creditcards.com

    http://www.creditcards.com/credit-card-news/wage-garnishment-for-credit-card-debt-1282.php

    The road to wage garnishment can be long and winding. Here’s a look at the many steps in a typical scenario leading up to wage garnishment.

    • The purchase: A purchase is made with a credit card and the customer is billed via monthly statement.
    • The delinquency: The customer does not make the monthly payment and begins receiving late notices and past due statements.
    • The charge-off: After 90-120 days — depending on the creditor and the state — the customer’s bill is charged off and sold to a third-party debt collector.
    • The debt re-sale: The credit card company sells the debt for less than the original amount owed, assuming a loss for the difference, and the collector pursues payment from the debtor.

    At this point, if the resold debt can’t be resolved, the collector has two main options:

    • Option A: The re-re-selling of the debt: Collector may then sell the debt to another third party debt collector and so on.
    • Option B: The lawsuit: In some cases, the creditor may pursue legal action to receive financial restitution on a debt.

    Once legal action is taken, the debtor is at risk of possible wage garnishment. 

    • The ruling: The debtor loses the case and the court issues a judgment against the debtor’s income or funds.
    • The notification: The customer is advised of the judgment; the customer’s employer is notified to garnish the employee’s accounts.
    • The garnishment: Money is garnished from payroll accounts or bank deposits and disbursed to the creditor until the debt is satisfied

     

     PS: Are you a victim of salary garnishment from your credit card creditor? Email  to tell us your story at gilbert@transitioning.org or goh_gilbert@yahoo.com. We can post your story on the site leaving out your real name – Gilbert
     
     
     
     

     

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    One Response to “Can Credit Card Creditors Garnish Salary from Debtors?”

    1. Good ideas. I visited school for Home design, so I have a ton of design catalogues, but I still have a very tough period opening them up and actually getting something out of them!

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