QUESTION
How long after nonpayment on a loan can they start the garnishment process?
Asked on Jul 30th, 2012 on Bankruptcy - Michigan
More details to this question:
I took a title loan out about 4 years ago. I was doing well about paying, and then I completely forgot about it. I was 7 months pregnant when I did it. Recently, I started paying them when I could. My last payment was the end of March. I understand I owe and I am willing to pay. I bring them what I can when I can. They call my work and send me threatening letters about garnishment. My balance is $567.03. Is there a time limit on garnishments? Is there a law about time frame on garnishments for nonpayment. Do they have to wait a certain time frame from last payment for garnishment?
6 ANSWERS
Real Estate Attorney serving Williamstown, NJ
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Law Offices of Slotnick & Schwartz
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There is no time limit. However, they must sue you and get a judgment against you before they can garnish wages.
Answered on Aug 20th, 2012 at 6:00 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I do not understand the facts of your question. Call for an appointment and with full details.
Answered on Aug 20th, 2012 at 2:48 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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They can not get a garnishment without an Order from the Court. They would first have to sue you, win and then they can get a garnishment. The S/L on Contracts is six years but you restart the clock with every payment. It is probably not worth it for a lawyer to get involved, but get in writing what is owed and see if they are taking on interest, late fees, etc. May need to negotiate on those. It may also not hurt, if you have a lot of other debt to look at bankruptcy.
Answered on Aug 20th, 2012 at 2:03 PM
Family Attorney serving Henderson, NV
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Harris, Yug & Ohlinger
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The unfortunate answer is that you defaulted on the loan and they are entitled to repayment. In Nevada, the statute of limitation on a written contract is six years calculated from the date of last payment. In order to garnish, in Nevada at least, they have to get a judgment in order garnish. Which means they have to sue you first. They also have to deal with statutory exemptions. Remember, if you can squeak out a $100.00 payment per month this thing will be gone in less than six months.
Answered on Aug 20th, 2012 at 2:02 PM
First, calling your work may be a violation of the Fair Debt Collection Practices Act. I practice litigation in this area throughout North Florida, and generally charge a contingency fee (no fees or costs to you unless you recover money). In order to garnish an account, they must obtain a judgment from a court finding you in debt, and then enter a motion for garnishment. You would have opportunities to defend against that in at least those two stages.
Answered on Aug 20th, 2012 at 1:49 PM
Dennis P. Mikko
A garnishment is a court order requiring a third party that owes you money to turn the money over to the creditor. In order to get a garnishment there first has to be a judgment. If they have not sued you yet, they cannot get a garnishment. You should speak with the creditor and set up monthly payments that you can afford in hopes they are willing to work with you and avoid suit.
Answered on Aug 20th, 2012 at 1:47 PM