Virginia Collections Legal Questions

Most likely, you should be able to get at least some of your funds back. No funds may be seized or garnished unless the creditor first obtains a judgment against you. If you never had notice of the lawsuit which resulted in judgments against you, you may have recourse under the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. §§501-597b. Even if the SCRA does not apply to your situation, you may have a claim for wrongful garnishment. A creditor may not usually garnish the entirety of your bank account, because a percentage of your earned wages are usually exempted in order to cover your living expenses. (See Citation.) Additionally, there may be an applicable exemption based on the fact the money came from military disability benefits. Prior to any funds being seized, you should’ve been served with this form [PDF], and as you will see on page two, there is an exemption for Veterans. ... Read More

According to Virginia law, if you are not properly served with notice of a lawsuit filed against you, any resulting judgment against you may be void. And if a judgment is void, it may be set aside. A judgment is considered “void” if the Court that entered the judgment lacked jurisdiction of the subject matter, or of the parties, or if it acted in a manner inconsistent with the due process of law. Plogger v. IMC Mortg. Co. (In re Plogger), 240 Bankr. 243 (W.D. Va. 1999). Due process of law requires that you receive notice of the lawsuit that was filed against you. If you never received notice of the lawsuit, the Court may lack jurisdiction, or more likely, the Court may have acted in a manner inconsistent with due process of law.  I am assuming the judgment entered against you was entered by default, since you just found out about the lawsuit and judgment for the first time. If you can demonstrate that the judgment against you is void, then you may be able to have it set aside pursuant to Va. Code Ann. § 8.01-428(A)(ii), which is the law stating that a default judgment may be set aside if it is void. Additionally, if you were in the military at the time the lawsuit was going on, you may be entitled to certain protections offered by the Servicemembers Civil Relief Act. 50 U.S.C. Appx. §§ 502 et seq.... Read More

You need to speak with a local consumer rights attorney.  There are various federal, local, and state consumer protection statutes that may protect your rights and a local consumer rights attorney will be able to determine which laws apply.   Most consumer rights attorneys offer free initial consultations to determine what options are available. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More

In order for the creditor to garnish your wages, the creditor must obtain a judgment from a court against you.  If the creditor has a judgment against you, it has the right to garnish your wages in some states.  You should speak with a local consumer rights attorney to discuss your matter, and determine if your state allows garnishment of wages. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.... Read More