What are my options if I defaulted on a credit card and a judgment was passed against me?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are my options if I defaulted on a credit card and a judgment was passed against me?
My paychecks are garnished 25%. About 2 months ago, without my knowledge, they wiped my checking and savings clean, leaving me minus $900 in the account after fees and other automatic payments. Then about 2 weeks ago, it happened again, this time leaving me -$500 in the accounts. They have now taken 34% of my pre-tax wadges this year. Is this legal? Is my only option Chapter 13?
Asked on September 8, 2014 under Bankruptcy Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
While there are limits on how much can be garnished, or diverted from, your paycheck to creditors, there is no limit to how much or how often money can be taken from your bank accounts. (Once the money is in your account, taking it is not considered wage garnishment any more.) Therefore, from what you right, this would be legal and your creditors may be able to this again before the year is up. If you still owe a cosiderable amount then, yes, you may need to consider bankrupty as an option, though you should also consider Chapter 7 (liquidation) as well as Chapter 13 (payment plan), since it's possible Chapter 7 might be better for you (depending, for example, on how much you own).
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.