[Rachel Roberto]

Hi. I have been notified by Chase that they are going to take me to court for the credit card, I haven't been able to pay. I was notified by a notecard in the mail. They jacked up the interest rate, so I can't even afford the minimum payments. I have been seeking information about wage garnishment. My home is only in my name, and I have had a significant loss of income (make about 1/3 of what I was making). Of course, I am going to make my house payment and car payment before my credit card. After making my house payment, and car payment.. I am left with about 400.00 of disposable income, which would need to be for both utilities and food. My question:

Would they garnish my wages, if my cash flow didn't allow it? Would the law allow them to prevent me from paying my house first, and require me to pay off the creditor first, causing me into foreclosure?

Thanks

[ScottGem]

Yes. If they get a judgement against you, then they can garnish your wages up to 25%. There is no issue of ability to pay. I suggest reaching a settlement or considering bankruptcy.

[Fr_Chuck]

Yes, if your state allows a garnishment ( and each state has their own laws, a few states don't allow, and a few have some restrictions)
But in general if they get a judgement, they court does not care what you pay, only how much you make, and they give up to a certain percentae to them before you get it, up to 25 percent in some states.

So that fact you can't pay other bills don't concern them or the court.