Certainly. If a creditor obtains a judgment against you and files for a wage garnishment, then your wages can be garnished. Whether a collection agency would accept a settlement of a lesser amount is impossible to say - you'd have to negotiate it with them and see what they agree to.
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Credit card companies can only garnish wages after they have received a judgment, which requires that they sue you. Collection agencies often settle matters for a lesser amount, but it depends on a variety of factors, but it would hurt to ask. If you want to try and settle for a lesser amount, you should be prepared to offer a lump sum payment at the time of the offer and make sure everything you agree to is in writing.
This should not be considered legal advice, but rather simple information. You should consult a lawyer to review your unique situation. No client-lawyer relationship exists until you sign something indicating there is.
Generally, the answer to both questions is "yes." Once a creditor sues for a credit card debt and receives a money judgment, the creditor may exhaust all of its remedies under New York law, including garnish wages. However, some forms of income are exempt from this treatment. Similarly, collection agencies can often settle debts for lesser amounts - it remains up to the creditor. Each individual case is different and I recommend you speak to an attorney.
CREDIT CARD DEBT COLLECTION
Yes, if the credit card company gets a valid judgment they can garnish your wages. Whether they actually will take this step depends on a number of factors such as the amount of the debt, age of the debt, etc...
Debt collection agencies have been known to accept lesser amount---but this is the important question: how do you know that the particular collection agency that is now "collecting on a credit card debt" owns the debt it is purporting to collect? Why would you pay a debt collector any money until they have demonstrated to you that they have the right to collect the debt on behalf of the credit card company?
Before you pay any debt you should get a validation/verification of the debt from the debt collector.
The chief way a creditor, whether they are credit card companies or collection agents, try to collect their money is through wage garnishments (as well as seizing bank accounts and liens on property). But they must have a judgment first. You can negotiate the debt with the collection agent but since they probably already have a judgment against you for the full amount they might be tough. You can file bankruptcy and stop the garnishment but you may lose what has already been taken depending on how long they have had their garnishment. Speak to a local attorney who can figure out your best course of acton. I am located in Commack.
Yes a credit card debt can become a debt that ends with a garnishment of wages. Generally one has to be sued and a judgment obtained first.
Collection agencies can settle accounts for less than what is owed however, that amount depends on what the parameters are with their clients/the creditors. Note that settling is not as easy as it seems and it is wise to seek assistance to make sure it is done properly through a licensed agency or a licensed professional. Be aware of scam companies and always do your own investigation to make sure the company is legitimate.
Nothing in this shall be deemed legal advice in any way and is meant for general informational purposes only. No attorney client relationship has been established.
Yes to both, however, there are ways, prior to filing for bankruptcy, to attempt to lift the garnishment and make the creditor prove its claim. This scenario is fact-specific, so I recommend you speak with a debt-defense lawyer who can make a determination whether this option is feasible.
This post is for informational purposes only. The above information is not to be construed as legal advice.
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