Credit Cards and Filing Bankruptcy - How Soon Will I Get Garnished?

Credit Cards and Filing Bankruptcy - How Soon Will I Get Garnished? """Before filing for bankruptcy, I speak with many individuals who fear having their earnings garnished. This is a valid concern, as 25% of each income can be garnished to pay off debts. Additionally, bank accounts can be garnished. However, federal and state laws have been enacted to protect consumers from excessively aggressive collection efforts and to prevent creditors from garnishing wages immediately if you have only missed a credit card payment. Medical invoices and credit cards are unsecured debts.

If you have missed a payment, creditors can become a nuisance by continuously calling you, but they cannot garnish your wages or bank account until they have sued you, obtained a civil judgment against you, and received a writ of garnishment against you. The collection process can be lengthy, and we can typically file for bankruptcy before our clients are garnished. Credit card companies typically delay one year before initiating legal action against debtors.

After 120 days of delinquency, creditors typically charge off unsecured debts and sell them to a debt collection agency, which then makes collection calls. If the debt collection agency chooses to file a lawsuit against you, they must do so personally. Typically, a process server is employed to hand-deliver a copy of the lawsuit to you. Occasionally, however, the notice is sent via certified mail. You have twenty days after receiving a copy of the lawsuit to file a written response to the allegations.

The creditor will obtain a default judgment against you if you neglect to respond to the lawsuit. With this judgment, the debt collector must then obtain a garnishment order against you. The creditor must give you notice before garnishing your wages, seizing your property, or garnishing your bank account after receiving a garnishment writ.

Internal Revenue Service exceptions are federal. The Internal Revenue Service applies a different set of standards to unsecured debt such as medical bills and credit cards. The IRS can garnish your wages, bank accounts, and seize your property without a court order or garnishment writ. If you owe money to the IRS, you would be wise to consult with an attorney immediately due to the fact that IRS regulations vary.

If you have credit card obligations, especially if the creditor is actively attempting to collect the balance, you should consult with a bankruptcy attorney. Typically, a consultation with a bankruptcy attorney is free, and an experienced bankruptcy attorney can address other legal issues that may arise in your case.""

" - https://www.affordablecebu.com/