Ifan original creditor accepts payment after a collection agency files a garnishment, does this void the garnishment?
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Ifan original creditor accepts payment after a collection agency files a garnishment, does this void the garnishment?
Asked on November 18, 2011 under Bankruptcy Law, Mississippi
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Good question. If the original creditor has accepted a payment in full for a judgment where a third party collection agency is garnishing the debtor's wages, it is very important that the debtor gets a signed satisfaction of judgment from the original creditor.
The problem arises if the creditor has assigned the judgment to a third party colleciton agency. In that situation, the acceptance of the payment by the original creditor may not stop the garnishment.
If the payment to the original creditor was a partial payment, most likely the payment will not stop the wage garnishment. I suggest that you consult with an attorney experienced in debt collection and payments to assist you in your matter.
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