[nceantonio]

My DH owes $2700 on a credit card that is about 4-5 years old. Then all of a sudden on Aug 25th a knock at the door and it was sherrif giving me a summons to give to my hubby.
We live in Oregon and the guy suing us for the money works out of Eugene Oregon (1 hour away). The total debt with all the total attorney fees is about $5700.
We went to a bankruptcy person and he said we don't need to file, and don't worry.
My dad just bought us a brand new $19,000 car in August. Both of our names is on the title. Then today Dec 20th we get a copy of the garnishment that they will be sending to his employer. My hubby only makes $386 on the 4th and $386 on the 19th of every month. We are a family of 4 (we have 2 kids, both under 3). We get $490 in food stamps. We come close to dirt poor. I don't understand all the words on this paper work, according to what I understand they can't garnish much maybe $17 every paycheck is that correct?
Also can they take the car? Its our only car, and my hubby needs it for work, I need it to take the kids to the dr's. Then in March or April can they take our taxes? We should be getting about $4000 or more back? We get Earned income credit. And, my dad said if I send in a payment for $5 if they deny that payment then they don't need the money and they can't take anything. Should I try it?

Please help, my stomach feels sooo sick, I can't believe they did this to me 3 days before I was due in August we get the summons and now 5 days before x-mas this happens.

PLEASE HELP!

[AtlantaTaxExpert]

This is a legal issue, so I would go see a lawyer at a free-legal-clinic about the garnishment order.

You may have to challenge the garnishment order in order to keep your Earned Income Credit from being confiscated to settle this debt.

Again, get competent LEGAL advice; your dad means well, but he is NOT a lawyer. I am sure there are legal clinics that offer free legal help in Oregon.

If no free legal advice is available, then try to see a counselor from the Consumer Credit Counselling Service. They are set up nation-wide and you can get their number from the Yellow Pages.

[ScottGem]

This bankruptcy "person" was he an atty? When you receive a summons you HAVE to respond otherwise a judgement is entered against you by default. You need to file in the court that issued the judgement to try and vacate the judgement. You might be able to get it vacated on a statute of limitations expiration.

Also I agree that your dad's advice, while well meaning, isn't accurate.

[Fr_Chuck]

Yes, I don't understand about "not filing bankruptcy"

I am not up on your state law exactly but normally on a garnishment they can on a family get up to 25 percent, you specific garnishment should either state a percentage they are going to take, or a weekly or check amount to take out. This should be an exact figure listed in the garnishment. You can talk to the employer HR and they should be able to tell you how much they are going to take.

And no that silly idea about sending them money, esp after they have a garnishment just does not work. And a offer to make payments has to be a realistic one normally for a court to view it as such, if it is not even the amount of interst on the amount,

The income tax is harder to get, but they can also get a attachment of any and all of your bank accounts, and take any money that is in them also.

But that is great, even if they get the income tax, you should take that money and pay them anyway. It would almost get the debt paid off, or they may settle for that amount of you get the money without them getting it first.