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Wages about to be garnished....which should I do first?

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Quick break down of my situation. I live in Chicago and Im currently a student (RN major). I work as a security Guard. I make no more than 1300 per month (paid bi weekly). I rent and after I pay utility bills, rent etc Im left with around $270 per month to by personal items, bus cards, etc.

My total debt is no more than 8.5k. Majority being credit card bills. The biggest portion of that debt is tied up with one credit card that I had. Via the wage deduction notice: Balance due 5109.53 Judgement in the Amount of 3313.73.

Ive al ready been to court for this debt around two years ago. Since then its been collecting interest. Im willing to pay off the debt. AT this point im just lookin to prevent wage garnishments.

Is my total debt too low to consider bankruptcy? I mean why would i risk having bankruptcy on my credit report for 10 years for a debt that really isnt outrageous...right?? Should I consider debt consolidation? Im willing to pay 100-125 (minimum) per month if need be.

Right now Im just looking for help as to what is the quickest way to prevent garnishments.

Thank You,

Judgment accounts cannot be included in debt management/consolidation plans.

The only way you are going to stop a garnishment at this point is to either pay or settle the account in full now. It is not likely the payments that you are offering will stop them since your garnishment would be higher. You should have offered them a paynment plan a long time ago.

it will cost you $1000-1500 to file bankrutpcy unless you file it pro se.

Sub: #1 posted on Thu, 08/30/2012 - 16:56

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Well I couldnt offer them anything in the recent past because A: I didnt have a job during most of that time and B: when I did try to set up payment plans they declined due to what I was offering not being a satisfactory amount.

Correct me if im wrong...but Pro Se means I do the bankruptcy on my own..correct? Im not educated enough in that field to do it on my own. So based off what I typed my only option is finding a lawyer and filing for bankruptcy? Is there any place that will give u a small loan if you have bad credit?

Im sorry if im being confusing...Im just trying to weigh my options.

Sub: #2 posted on Thu, 08/30/2012 - 21:43


A few more questions......I get direct deposit and i have 1 checking account. Should I cancel both of those out and just deal with cash and money orders? there a place on this site or some other site that gives a list of bankruptcy attorneys that have high/"trusted" ratings? would they be listed on the BBB site?

Sub: #3 posted on Thu, 08/30/2012 - 21:54


With a recent judgment and charge offs and bad credit, no one is going to lend to you. At least not a legitimate lender. Do you have any family that could lend to you?

A bankruptcy attorney is going to cost you an average of $1500 plus filing fees. That has to be paid before filing. So if they are going to garnish you, by the time you hit the actual filing, you loan might be half way paid off. Unless you can come up with a the cash, bankrutpcy will probably be a waste of time. You could let them garnish you to pay it back...pick up a part time job to supplement.

Sub: #4 posted on Thu, 08/30/2012 - 21:54

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No...i dont have family to help me financially. I dont know the percentage.....from what I read in Illinois it can be from15% or 25%.
Since I make about $640 bi much am i looking ot pay them every other week?

Also...would it be wise to close my bank account? I pay most of my bills via check or debtit card. Since im basically poor and dont own much,,,,can my bank account be levied for a credit debt thats is under 6k?

thanks for your help.

Sub: #5 posted on Thu, 08/30/2012 - 22:05


You can put your money into a prepaid debit card. If you are in an area with a lot of chase banks the chase slate is a good idea as it's 4.95 a month with no fees for ATM withdrawls (the other ones charge massive fees for using an ATM along with the ATM owner fee of 3 dollars or so) otherwise go with a netspend or something like that.

Sub: #6 posted on Thu, 08/30/2012 - 22:09

waffles waffles
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I have a netspend card already. Would it be safe to direct deposit my payday checks to that? Or should I jusst deal with the paper checks to be on the safe side. Also......which percentage is it....15% or 25% for illinois?


Sub: #7 posted on Thu, 08/30/2012 - 22:28


netspend is pretty safe. You can certainly set up your direct deposit to it... you're going to lose a lot of money in the long run paying check cashing fees if you take paper checks if you plan to close your bank account.

Sub: #8 posted on Thu, 08/30/2012 - 22:30

waffles waffles
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Considering its only a little over 5k....I guess ill just let them garnish me for the next 6 month until tax return time. Then ill just pay off the remaining balance with my refund check.

BTW...what about my "percentage" question? The lesser of 15% (IL) or the lesser of 25% (fed)?


Sub: #9 posted on Thu, 08/30/2012 - 22:40


It's 15% of your disposable wages, which means gross pay minus federal, state, social security, medicare and local taxes (and minus child support if applicable).

Sub: #10 posted on Fri, 08/31/2012 - 06:06

OhioGal1 OhioGal1
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