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cookiew65 · Jul 3, 2006, 07:04 AM

I have a question, I am going to court for a debt with a law office regarding a credit card that I have been paying since last July. I have sent letters to the law office stating that I owe the debt and that I intend to pay it and have been paying each month. They wanted a certain amount I did not have but I tried to make another settlement with them. Now the court sent me paperwork that they intend to garnish my wages 25% each pay which is around $270.00 a month. I don't have that kind of money and I will not be able to pay my mortgage or support my child as I am a single mother. Does the court look at all of these things and take them in consideration? I even have a copy of all the checks, correspondence and my budget to show that I don't have anymore money and that I intend to continue paying this debt.

Fr_Chuck · Jul 3, 2006, 07:16 AM

Not really, if you owe the money and hve not paid it according to the rules and regulations of the debt, they have the right to sue you in court to get a judgement, if they have a judgement, they may attach any and all money in your bank account and/or get a garnishment.

Actually the 25 percent is lower than many, a lot of people get 50 percent of their pay garnished. Must be because you have children at home, some states have for a famiily exemption to lower the amount of the garnishment.

It does not matter that you were making payments, the lawyer will admit you did, just not enough. I would say you will still be stuck paying the 25 percent but you can ask the judge for a lower amount.

cookiew65 · Jul 3, 2006, 07:45 AM

Originally Posted by Fr_Chuck

Not really, if you owe the money and hve not paid it according to the rules and regulations of the debt, they have the right to sue you in court to get a judgement, if they have a judgement, they may attach any and all money in your bank account and/or get a garnishment.

Actually the 25 percent is lower than many, alot of people get 50 percent of thier pay garnished. Must be because you have children at home, some states have for a famiily exemption to lower the amount of the garnishment.

It does not matter that you were making payments, the lawyer will admit you did, just not enough. I would say you will still be stuck paying the 25 percent but you can ask the judge for a lower amount.

I spoke to someone in my office and they said that the law office on behalf of the credit card has accepted the payments for the last year and has cashed them. I have copies of all checks. He said that if I explain to the judge I will not be able to afford my residence with my child that the judge will take that into consideration. This whole thing is so confusing. When it goes to a collection agency can they ask for whatever amount and terms they want?

ScottGem · Jul 3, 2006, 08:28 AM

Were you paying the credit card company or the law office? If you were paying the money to the law office and they accepted and processed those payments, you may have a case about them accepting the terms.

No, the creditor cannot ask for whatever terms they want. They must adhere to the original terms under which the debt was taken. However, if your debt is such that the minimum payment due is the $270, they could ask for that.

While judges may be sympathetic, they are have to adhere to the law.

cookiew65 · Jul 3, 2006, 09:18 AM

Originally Posted by ScottGem

Were you paying the credit card company or the law office? If you were paying the money to the law office and they accepted and processed those payments, you may have a case about them accepting the terms.

No, the creditor cannot ask for whatever terms they want. They must adhere to the original terms under which the debt was taken. However, if your debt is such that the minimum payment due is the $270, they could ask for that.

While judges may be sympathetic, they are have to adhere to the law.

I have been paying the law firm since July of 2005. I also sent correspondence to them explaining the situation and that I was unable to make the settlement they wanted and suggested another and they would not take it. They continued to cash all of my checks that I have sent them. If I owed the credit card company directly my monthly amount would be $70.00 maximum. Thanks for your response.

ScottGem · Jul 3, 2006, 10:08 AM

Have you being paying the $70? Is what you have been paying been more than the monthly interest?

cookiew65 · Jul 3, 2006, 11:13 AM

No, I have been paying $15 to $20 a month for this card. The $70.00 represents the maximum that the credit card company would have charged me per month. I have been making roughly the monthly amounts to the law office and they never said that it was not enough money. It was just a couple of months ago they then took me to court because they want all the money now. Thanks for responding.:)

cookiew65 · Jul 24, 2006, 06:41 AM

I just wanted to update what happened in court. The state of NJ can garnish your wages and no matter what you say the court can not stop them. The case of Great White vs Guido stipulates that the appellate court has already made this ruling. The only thing the judge can do is modify the amount that they will take from your pay. And, that is discretionary by the judge. Many of the lawyers referred to the original credit card agreement that we all sign when we open these accounts and basically we are saying to the creditor that if we don't pay they can use any remedy they want to obtain the money due. The judge is reviewing my paperwork and I will receive notification of her decision in the mail. I just have to wait. Get rid of credit cards...

CaptainForest · Jul 24, 2006, 05:08 PM

Originally Posted by cookiew65

Get rid of credit cards......

I think that is the wrong attitude to be taking here.

Credit cards themselves are not dangerous.

The dangerous part comes when/if you use them and don't pay your bill at the end of the month.

Everyone needs at least 1 credit car, to rent a car, to rent a hotel room, etc.

But, only using it when you have the cash to pay off the bills is another story.

ScottGem · Jul 25, 2006, 06:07 AM

I agree with Forest. The issue is not credit cards but how they are used. What the credit card agreement you signed said was that you agreed to pay any charges incurred and the creditor can use any LEGAL remedy to recover that debt. That's what they are doing. They have a legal claim against you so, its true, the court cannot stop the garnishment. That's basically what we told you initially.

Good luck and I hope the judge is compassionate and reasonable.

cookiew65 · Jul 25, 2006, 06:22 AM

I was not saying credit cards are bad, but maybe to make sure that when you sign for one you realize more of the responsibility that comes with it. I always knew that I owed the money and I was always going to pay it. I was just upset because the tactics that some companies use to get the money. I understand it is a debt but it has become a ruthless business and understandably so because of the bankruptcy rate these days. I guess I looked at it I was paying them every month, just not the amount that they were looking for. Yes, I also hope the garnishment is reasonable. Thank you all for your comments and help.