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Ignoring Credit Card Debt Can Lead To Wage/Bank Account Garnishment

Posted By Allmand Law Firm, PLLC || 18-Sep-2008

With millions of Americans facing job losses and mounting credit card debt, many people are choosing to ignore calls and letters from debt collectors. Let's face it, when you're struggling to pay the basics (food and shelter), who has any money or energy left for the debts you can't pay off any time soon? But be forewarned, if collectors see that your debt is languishing and you haven't made any payments, then they may attempt to garnish your wages or bank account.

What Happens In A Garnishment?

Once the debt collector secures a court judgment against you, he can use it to seize your wages or bank account. In the case of wage garnishment, most states won't allow the seizure of more than 25% of your wages. Also, certain types of income, such as SSI cannot be garnished. Speak to a Dallas bankruptcy attorney and discuss your options regarding what parts of your income are exempt from garnishment.

In the case of a bank account garnishment, all funds can be seized with few exceptions as noted above. It is important to note that it is up to the debtor to prove what funds in the account are exempt from seizure.

How to Avoid Garnishment

In garnishment cases, time is key. It is important to respond to debt collectors and negotiate a repayment plan or settlement before they sue you. If you have already been sued or have a garnishment, speak to an attorney immediately.

Don’t give up more than you have to! If you have any questions about the specific of your case or need assistance in protecting the funds in your account, contact the Allmand Law Firm, PLLC and schedule a free, initial case review with our knowledgeable Dallas bankruptcy lawyer today.

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