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How long for wage garnishment(NY)

Discussion in 'Debt Management' started by JOSUE, Jun 24, 2010.

  1. JOSUE

    JOSUE LoanSafe Member

    Hi All,

    I have just started the mod process and up until June have been current on everything. But work has slowed and I have made a decision not to pay any credit cards. As much as this makes me crazy I need to focus on Mortgage, Maintenance(co-op) and a small business loan.

    Just curious if any of you have gone through the wage garnishment process. I have called these CC companies and all say sorry, can't help you so I really have no choice. I intend to pay them, but the reality is telephone,Con ed, Med insurance, etc all come first.

    So, if anyone has gone throuugh this does it take months or a year befor a judgemant. Just would like to be prepared.

    Very stressed. I can deal with the letters and creditors calling, but don't want a suprise in just a month that they will take money right from my account. And when you fall way behind are they then interested in lowering the interest or amount?

    Any response appreciated.

  2. davephx

    davephx LoanSafe Member

    No one can get a garnishment till they have a judgement which is a long process.

    Usually credit cards don't charge off and turn over to lawyers or sell to buyer who may file suit till 180 days delinquent.

    Than have to get a collection letter if sold that you demand verification within 30 days so that take about 2 months more.

    Than they may file suit - in most states have 20-30 days to file an answer from when served.

    Than slow Court process.. Discovery - in AZ have to file a form within 40 days after the you file an answer.

    Than process all depends upon your jurisdiction.

    They will move for a Summary judgment. You will answer and oppose. Than more back and forth with briefs if you know what your doing.

    Than may be pre-trial conferences or mediations ordered by the Court.

    Than maybe more pretrial conferences.

    In AZ it is very hard for a creditor to "prove the debt". I have had affiadavits from credit card company on validity tossed out etc.

    But you have to be a amateur lawyer and know how to fight. But just simply answer to a Complaint and some relatively simple tactics can delay an actual Court trial for a very long time. What you want to be sure of if still want to delay is to counter any motion for judgement. If you have any good arguments they can be overcome since there has to be no real legal issues for a judge to do a summary judgement against you. The key in most States is they have to prove the debt by an original credit card agreement signed by both parties etc.

    I believe in Calf it is easier to get credit card judgments but my concern and experience is in AZ. I have no idea what the situation is in other states.

    But bottom line is you have lots of time. It is not like a non-judicial foreclosure in real estate you have to get a Court judgment against you.in order for anyone to garnish your wages ir bank accounts.,
  3. JOSUE

    JOSUE LoanSafe Member

    Hi Davephx,

    You know, I love this site.

    Thank you for that reply. It just helps to know that the ATTACK is not right around the corner. I can relax for a bit. I know I will have to get to the CC issue, but just need some time to get up to date with the other bills.

    Again, this site is so great. I really appreciate the support people show eachother and the vast amount of information I have gotten has really helped me in what I know will be a long process.

  4. Do not want to lose it

    Do not want to lose it LoanSafe Member

    It has been my experience here in Ma. that if you have defaulted on a credit card that is less than $2000. the cc company will take you to small claims court and that usually happens in about a years time after you default.
    I have been in default on the larger credit cards over $2000. and all I get is letters to try and settle for much lesser amounts and collection calls -no court.
  5. Kittywalt

    Kittywalt LoanSafe Member


    We live in tucson and tonight got a served with a summons for a cc. We are trying to get our mortgage modified, and don't want to stop that process by filing bankruptcy, but plan on it once we get our loan mod done. Can you tell me what steps I can take to fend off the process for lets say the next 120 days so that our wages aren't garnished? Also would just retaining an attorney for bankruptcy be able to stop this in its tracks, or would be have to actually file for the bankruptcy to stop the process at this point.

    Thank you for any insight you might be able to provide.
  6. davephx

    davephx LoanSafe Member

    First you have to answer the Summons within 20 days or they will move for a default judgement.

    You have to repond by item to each in the complaint but can simply deny all that you disagree with (might admit your name or other obviously correct info). You also "should" offer affirmative defensives but this gets very complex which is why some legal help may be needed.

    Then 40 days after the Answer is due in AZ you have to file a Rule 26.1 Discovery statement.. sigh.. some Courts have standard forms for this..

    Then some courts were order mediation .. but the credit card company may do a motion for judgement which you have to respond to.. sigh again...

    It also depends if its the cc company itself is suing you or a 3rd party collector... If 3rd party they have to prove the assignment of the debt and if direct or 3rd party had to prove the debt by original agreement signed etc...

    Your wages can not be garnished until there is a final judgement entered by the Court. And they will usually try and negotiate with you before they do that.

    Retaining an attorney as far as I can tell will have no bearing on the case - its in the Court and many people "threaten" bkk but until they file it makes no difference.

    But you can wait until the final judgement (and I think you have like 10 days notice before takes effect) and can then fill BKK if your at risk of garnishment. Bank account garnishment if they can find your acccounts is also a concern.
  7. JOSUE

    JOSUE LoanSafe Member

    Hi Davephx,

    Thanks for the info, but one question-
    I didn't think about this before but am now concerned- is the process it takes for wage garnisment the same as them garnishing your bank account.
    And what did you mean by them finding your bank account. Is there a way for them to get that information if you haven't told them? Can they garnish from your bank account without notice?

  8. davephx

    davephx LoanSafe Member

    Once you get a judgement against you the creditor can get a levi/garnishment on wages (with some limitations), bank account or any other assets they can find. if you car has value (equity) they can even go after it.

    For banks they have to find the bank but can get from credit reports. Whenever you open an account will be a credit report trail as I understand it that they can find. Obviosly if you ever paid a credit card from a bank account they will have the info so have to change it. Sort of a *** and mouse game.
  9. JOSUE

    JOSUE LoanSafe Member

    Thanks again Dave,

    I got nervous and started a thread asking if wage and bank garnishment had the same process.

    As long as it is a long process I think I will be OK. I will deal with the credit debt when they force me to. Hopefully I will be caught up on my mortgage by then.

    As long as they have to give me notice, get a judgement, etc. I can handle it. I have always paid my bill(even if it was minimum payment) on time so making that decision is really a stressor for me. As long as I know they can't get to me for a while.........:confused:


  10. brota

    brota LoanSafe Member

    Can they take money out of your pay in MA?
  11. Kittywalt

    Kittywalt LoanSafe Member


    So i filed my answer today and i found a lawyers website also that said I had to file the certificate of compulsory arbitration with the answer, which I did. However when I checked the Superior Court website tonight all it showed was the certificate of compulsory arbitration was filed, no answer - is this right or is there a problem? I just received my 10 letter 5 days ago (on the advice from my BK attorney he advised me to wait for the 10 day letter and then file my answer on the 5th day). Also you mentioned filing for discovery, do I do that now?

    I appreciate any guidance or insight you have. Thanks Kittywalt
  12. Jack White

    Jack White LoanSafe Member

    My wife got a garnishment on her and the whole process from her stopping payment to the garnishment going out was three years. Even when they got the garnishment they took another year to do anything with it and all they did was go after a closed bank account.

    Avoid the process server and the cc company will give up, Ive done this with several of them. Process servers don't make much per service so they will not make many attempts on you because its a waste of their time. They are not going to hunt you down like Dog the Bounty hunter.

    CC companies will eventually want to settle with you out of court as its alot cheaper for them. So string them along as long as you can. When they call you tell them that you are injured and are waiting on a large settlement check and as soon as you get your money you will pay them. The point is to keep them from going after a judgement and its not hard to do.
    I had to stop paying on nine different accounts and everyone of them made me numerous offers to settle or restructure payments. I knew I was filing chapter 7 so I strung them along until I could get some medical stuff done and then filed. It worked great. I've been through whole process start to finish so let me know if you have any other questions.
  13. Jack White

    Jack White LoanSafe Member

    You need to check your state laws on that. It goes by income where I am. If you make under a certain amount they cannot garnish. Don't allow them to serve you and you won't have to worry about it
  14. Jack White

    Jack White LoanSafe Member

    Something else Id like to add to this thread that may be of interest to you guys,
    When I first decided to file bk my attorney and I decided to wait 30 days to file. He told me that in the mean time when my creditors called I should tell them I was filing and refer them to his office.

    I did this with all of my creditors, they would call and Id tell them that I was filing bk and gave them the attorney's number. As you can imagine I was referring creditors to him left and right as I had many. When I spoke with him again I made the comment that he must have been flooded with phone calls on my behalf. He responded by saying that he had not received one single call. All of these creditors had stopped the phone calls and activity based on me telling them I was filing without ever checking on it.

    I don't know if they would have eventually checked into it or not but this could be another way for people to buy time. Look up the biggest law firm in your area and give their number to your creditors. Busy bk lawyers wont answer their own phones and if cc company leaves message about client they don't even have its doubtful they will return the call. Anyhow this is just another idea to buy time and keep the wolves at bay.
  15. davephx

    davephx LoanSafe Member

    Your court rules in Tucson sound very different from Phoenix so don't know much. So far I've been in judicial Court, not Superior since each so far has been under $10k or $20k..forget the limit for judicial court.

    The compulsory arbitration is in Superior Court but I've never dealt with it or researched it... yet... if I don't have to...

    I don't know what a 10 letter is.

    Sorry I am worthless on your issues :(

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