I have looked at a recently suggested chapter 7 online guide as well as New York state law section governing garnishment but can not find what types of income are subject to attachment or garnishment in these sources so I would appreciate any help I can get here... Also specifically, if someone is disabled and thus out of work for months but receiving only half-pay from his or her employer, is this exempt?. In addition, is there a ''normal'' time during which the banks and/or credit card companies wait and try to recover through collection calls, mail, emails etc. before they decide to sue and seek a judgement?. Thank you for any info you can give!

I have looked at a recently suggested chapter 7 online guide as well as new york state law section governing garnishment but can not find what types of income are subject to attachment or garnishment in these sources so I would appreciate any help I can get here........Also specifically, if someone is disabled and thus out of work for months but receiving only half-pay from his or her employer, is this exempt ?........In addition, is there a ''normal'' time period during which the banks and/or credit card companies wait and try to recover through collection calls, mail, emails etc. before they decide to sue and seek a judgement?............Thank you for any info you can give!
A lot depends on your state however in general income that comes from a Government agency such as welfare, SSI, or Social Security is exempt. Usually child support is exempt. In most cases you are allowed to exempt the minimum amount for survival needs like food and housing but most likely you will need court backing for this. The key too much of handling debt when things get tough is to communicate and if things end up in court to "appear". To often people blow off the process when even slight effort might help the situation. Also... no matter what the threats from collectors might be they can not do much without an order from a court... especially like attaching pay or repos other than a car. There is no rule on when banks or credit card companies will start getting serious. Some it starts at 90 days and some it might be up to 6 months. Some credit card companies will start chargeoffs at 120. That does not mean they dismiss the debt. It means that the internal collections methods such as calls might stop for awhile but the debt is being sent to a lawyer or 3 party collector for more hard collections. If you are dealing with a 3rd party collector (outside of you and the bank) then you should learn a few things about the Fair Debt Collections Act which sets rules they need to abide by.
Bye the way... all of this stuff you hear about what a collector can or cannot do such as calling you at certain hours, usually only applies to third party collectors and not the one you actually owe unless they violate other laws such as assult.

A lot depends on your state however in general income that comes from a Government agency such as welfare, SSI, or Social Security is exempt. Usually child support is exempt. In most cases you are allowed to exempt the minimum amount for survival needs like food and housing but most likely you will need court backing for this. The key to much of handling debt when things get tough is to communicate and if things end up in court to "appear". To often people blow off the process when even slight effort might help the situation. Also ... no matter what the threats from collectors might be they can not do much without an order from a court ... especially like attaching pay or repos other than a car. There is no rule on when banks or credit card companies will start getting serious. Some it starts at 90 days and some it might be up to 6 months. Some credit card companies will start chargeoffs at 120. That does not mean they dismiss the debt. It means that the internal collections methods such as calls might stop for awhile but the debt is being sent to a lawyer or 3 party collector for more hard collections. If you are dealing with a 3rd party collector (outside of you and the bank) then you should learn a few things about the Fair Debt Collections Act which sets rules they need to abide by.
Bye the way ... all of this stuff you hear about what a collector can or cannot do such as calling you at certain hours, usually only applies to third party collectors and not the one you actually owe unless they violate other laws such as assult.


You answered my q's very well and to the point!. I always like to get the skinny on such matters from people like you in the know!. Thanks a mil!

This post is from July, 2008.