My check is being garnished by a third party debt collector. can they charge interest on the original amount of the debt?
3 attorney answers
Yes they can charge interest on the Judgement, and they do! Yes they can pursue you on the Debt even though it disappeared from your credit report. It's best if you consult with a Bankruptcy Attorney to see if Bankruptcy is right for you, because a Bankruptcy stops wage garnishments. See my guide to deciding which type of Bankruptcy Relief you might qualify for: https://www.avvo.com/legal-guides/ugc/chapter-7-vs-chapter-13-bankruptcy-which-is-best-for-you-
Any advice given is general in nature and cannot be relied upon until the client retains the attorney after a full interview and review of the facts of the situation. No attorney-client relationship exists until a retainer agreement is signed and fees are paid.
In addition to what Mr. Edelman answered, judgment creditors amounts incur interest of 9% per annum. In addition, there are charges every time they renew the garnishments. Also, they can garnish bank accounts. And also there is likely judgment lien has been filed.
If this debt is the "tip of the iceberg" you might consider filing bankruptcy.
Most Chicagoland lawyers offer free initial consultations.