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Can a debt collector refuse payment because it isn't a large enough payment and still attempt to garnish wages?

Post Falls, ID |

I am in default for a person loan I recieved when I was going to school. I have attempted to make monthly payments on several occasions and have been told that they will not accept a small payment at this time. I cannot afford the large payment of 550. per month that they are requesting and now they are attempting to garnish the wages of my cosigner. Can they legally refuse my payment of 150.00 per month (which i also included I would be paying more as my financial situation improved) and garnish my cosigner? Wouldn't they initially have to come after my wages?

Attorney Answers 1


Your questions is a good question. It depends on whether you had an agreement with them to pay the $150.00. Whenever you make this type of arrangement, get it in writing. Have the creditor agree not to take further legal action of any kind so long as payments are being made. If you don't have any such agreement (in writing or not), then the creditor can demand full payment and refuse to accept partial payments. The creditor can also sue and, if it has a judgment, collect on that judgment by starting a garnishment proceeding. You'll need to check on your State's garnishment laws to determine how much the creditor can garnish. If the amount is less or close to the amount you are offering to pay, you'll have a strong argument that they should take the voluntary payment from you, and not garnish the cosigner's wages. Good luck!

Mr. Martin is licensed to practice law in WI. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Martin strongly advises the questioner to confer with him to acquire more information about the specifics of their case.

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