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Posted: Sat Oct 13, 2007 11:06 am

If you are being sued to collect a debt, can consolidation help prevent wage garnishment?

Posted: Sat Oct 13, 2007 11:40 am

If you haven't got the judgment by the court, a debt management company can help and work out arrangements with the creditors. If everything works out fine, they might withdraw your case from the court and you won't be sued.

Posted: Sat Oct 13, 2007 2:36 pm

It's possible if you can get it done before it starts but after I doubt it.

Posted: Sun Oct 14, 2007 9:08 am

If you enter into consolidation but still end up going to court, would a judge honor your contract with the consolidation company and make the CA/creditor honor those payments or would the judge throw out the consolidation effort and make you pay through wages or court payments?

Posted: Mon Oct 15, 2007 12:44 am

if you are getting sued a lawyer is your best option at this point you need an expert if you are actually being sued!

Posted: Mon Oct 15, 2007 12:42 pm

Lawn - If you enter into a consolidation program, and are sued, the judge usually will only care if you legally owe the debt or not. They don't care if you are making payments, etc. The only question before them is if you owe. So being in a consolidation program would not stop the creditor from obtaining a judgement.

But - Most state's now have a program where before you go before a judge you go through mediation. That's where you, the creditor, and a mediator sit in a room and try to work something out. In that situation you would be able to work out payment arrangements, but if your county does this and you miss a payment, the judgement is automatically entered against you and the creditor could proceed with garnishment.

zeania · Posted: Tue Oct 16, 2007 10:38 am

A the student loan did was send a letter to my job stating that they were going to start garnishing my pay without going to court. They take 15% of whatever i make every week. They told me that the only way i can stop it is to make a payment of almost $200 dollars every month for the next 6 months while they continue to garnish my wages every week so that almost $500 or more a month in order for them to stop garnishment.

Posted: Tue Oct 16, 2007 8:30 pm

Thanks Goudah-wasn't sure on how that would all work out.

Zeania-what did your employer/human resources department say to you about the letter? Are they going to abide by the letter?

Posted: Tue Oct 16, 2007 8:36 pm

If the garnishment letter is valid, the HR dept has no choice but to comply. Student Loans will indeed garnish your wages if not paid...and its not a threat, they will follow through.

Posted: Wed Oct 17, 2007 4:28 am

So am i understanding correctly that a student loan is diff in that they don't need a court order to garnish?? No judgement has to be won first?
That's interesting to know, not that i have any student loans! I remember my fist semester of college my dad gave me $500 to pay for tuition, books and food! Shocked

Guess i'm telling my age here! ha ha
Ang

Posted: Wed Oct 17, 2007 6:58 am

Federal law authorizes the Department or the student loan guarantor that holds a defaulted loan to collect the debt by non–judicial wage garnishment – a withholding order issued by the Department or the guarantor without the need for entry of a court judgment against the debtor.