Question

My husband recently received papers that his wages are being garnished for a credit card we defaulted on when he was out of a job in 2018. We tried to settle with them when he lost his job but they wouldn’t work with us then because it was 2 months past due when his position at his job was eliminated. When we got the papers he called to try to negotiate the amount due but they won’t lower it. I plan on asking for a pay for delete. Is there anything else I should know?  

Answer 1

We were able to work with the lawyer on our to just make monthly payments rather than having them garnish. Even after they garnished it the first time. Definitely call and talk to them.  

Comments

@anethole166 the collection company had to have a lawyer to file for garnishment. That is who we called.  

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Maybe not true for all states but your wages can't be garnished unless they went to court. You would have been served and that would have been your chance to negotiate lower payments in front of a judge.  

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@anethole166 to the company or to the court? The court would have notified you of a court date. If you fail to appear, a default judgement is entered. Once they have that they can garnish wages and bank accounts. You really need an attorney at this point. They hold all the leverage.  

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@anethole166 well at least you can move past it and continue on your financial journey. Best of luck to you.  

Answer 2

I would say once they go after his payroll they will no longer accept lower payment or payment on your terms. The garnishment is a guaranteed payment in full at a percentage of your income, the only way to stop it now is to offer the full debt up front. You can go to court but that doesn’t normally help, or file BK. That’s just my experience from one 10 years ago. Hopefully you can work out a deal.  

Comments

@anethole166 oh that’s good you’re dealing with it ahead of time

Answer 3

Set up a payment plan. They are not likely to negotiate the amount due but will work out a payment plan with you. Also start looking at the laws in your state in some states garnishment can be stopped or reduced by going to court and proving a hardship.