Posts by rowdyraven112

Ethan Mitchell4 said:I actually agree with your point that the bailiff is the one who needs to contact the IRS directly to handle opening a protected account.

But I’m going to have to disagree with you on the idea that the parent has to babysit the process of making sure child support hits that protected account. Once they hand over those protected account details to their employer, HR should know exactly how the mandatory relationship law works. It shouldn't be the employee's job to constantly remind the payroll department which specific account receives those funds; that's what they're paid for.

Listen, anyone receiving protected payments—and I mean absolutely anyone—has to report to the IRS first. You go there, and they'll give you the rundown on what comes next. And yeah, I already said this applies to one-time payments too. Do yourself a favor and actually read through this thread; the answers are already here if you bother to look. If I have to start repeating myself, we’re getting off track.

ruggedmaker2 said:Fresh off a seminar and honestly, I’m still pretty confused. 😁

They weren't exactly crystal clear when they got to Section 197.

Section 197.
(1) A wage garnishment order specifies the portion of wages to be seized and mandates that an employer who does not pay the debtor via a bank account must instead remit the specified amount directly to the creditor once the order becomes final.
(2) This garnishment order also applies to any subsequent salary increases that occur after the order has been served.

I guess I have to wait for the official ruling to see if this section actually implies that employers are off the hook for garnishing wages if they already pay everything through a bank account.

To be honest, nobody could figure out who they're even talking about—people who don't pay wages through a bank account. I mean, under current IRS regulations, you HAVE to pay via bank transfer.

What do you guys think? Why even mention employers who don't use bank accounts for payroll? What's the actual point of that clause?

Of course there are parts that can be paid out under the table. We're talking about various payroll add-ons—per diems, field stipends, hazardous chemical allowances, mileage reimbursements... all those extras dictated by collective bargaining agreements that technically count as wage supplements (correct me if I'm wrong on that one). The statute ensures even those specific amounts get handed over to the creditor. Otherwise, there’s a massive loophole: you can just coordinate with your employer to label those payments as, say, a gift for your kid. Under the current bankruptcy law, that falls under protected funds, which then get deposited straight into a protected account.
I reckon employers are going to start getting pretty generous when it comes to childcare benefits lately.

hollowmason64 said:It’s exactly because of all those headaches you mentioned—and the constant mess involving SSNs—that they're looking to fix this in the new bankruptcy law.

When does that actually kick in? September 1st?

So, the new bankruptcy law kicked in on September 1st. What changed? Not much. They’re just speeding up the seizure process and slapping even more penalties on debtors. That's it. Nothing else.
By the way, you really need to check the date on that bankruptcy law filing. That specific law doesn't apply to any rulings issued before September 1st, 2014. Simple as that.

Feel free to set me straight if I've misread anything.

In short:
Expansion of protected zones: Articles 172 and 173 of the law.
So, here’s the news: these amounts are now exempt from seizure under bankruptcy law.
Child support payments made into that specific bank account?
Business travel reimbursements and commuting allowances—up to the legal limits—aren't taxed as income. Simple enough?
The 12th gift for kids under 15 and those newborn support payments? They stay under the IRS threshold for non-independent work income, so you don't have to worry about them being taxed. Simple as that.
Disaster relief funds. For what? Recovering from natural disasters and extreme weather events.
Disability benefits, long-term sick leave exceeding 90 days, death benefits for employees or their immediate family—it all falls under the same umbrella. As long as they stay within the limits set by the IRS, these payouts aren't even considered taxable income under non-self-employment rules. Simple enough, right?

Regarding the fees: check Article 173.
Look, the rules in paragraphs 1 and 2 still apply even if we aren't talking about standard wages, pensions, or income from a small business or freelance gig. It covers everything else—property, assets, capital, insurance payouts, you name it. If that money is the only thing keeping someone afloat, they can prove it with a legal document. Once they show that this is their sole source of steady income, the law kicks in. Simple as that.

Regarding Article 173. Look, if you’re pulling in side income, the rules are exactly the same as they are for your regular paycheck. It doesn't matter. If your salary is below the US average, two-thirds of your income is protected. If you're making more than the average American salary? Then two-thirds of that average is what's protected. Simple as that.

The debtor still has to handle their own protected income. That means they have to go down to an IRS branch and report it themselves before the money even hits the account—especially since things like a one-time gift for the kids aren't automatic. The law doesn't provide for automatic protection just because some people in my DMs think it does. They're wrong.

Served the papers.
Still no legal deadline for when a court has to issue an enforcement order and serve it to the debtor. But there is a timeframe that exists... It can't be shorter than 30 days. It can't be longer than 60. Period. Regarding the second delivery attempt. Here’s the update: now, the notary or the court is required to pull residency records from the Department of Homeland Security to locate the debtor and serve them based on that info. It’s still unclear if the court sends written notice to both addresses. After two failed attempts, the ruling becomes final just eight days after being posted on the local court's electronic bulletin board. So, basically, there's still zero guarantee the debtor actually gets served the seizure order.

Objection.
Objection regarding decisions issued after September 1, 2014. It better be backed up by credible documentation. Period. The court has the legal authority to just reject it as incomplete. No chance for a fix, no option to supplement. That's how it works.
Bottom line: foreclosures are going to speed up. It’s highly unlikely any objection will actually be accepted or result in a rejected seizure order.

People who received a seizure order before September 1st, 2014, need to pay close attention. Local courts will probably just rubber-stamp rejections because they claim an objection is "incomplete" or lacks enough detail. You can appeal to the State Court based on misidentified facts. Make sure to mention that the amendments to the bankruptcy law that took effect on September 1st, 2014, cannot be applied retroactively to orders issued before that date. This means your objection doesn't need to be backed by exhaustive documentation right now; those details will be sorted out during a civil lawsuit instead.

That’s the quick rundown of what matters in the law for individuals.

EDIT:

http://www.govinfo.gov/examples/link_placeholder

The bolded parts indicate the specific amendments. Honestly, you should read this given how things are looking.

restlesssailor90 said:Hey there! Does anyone here have any firsthand experience with how long it actually takes to deal with an objection against an enforcement order based on an authentic document at the Los Angeles County Superior Court? It’s just a small claims matter, but the case was transferred from the Los Angeles County Superior Court over to the Chaksta County Superior Court, where it's currently sitting "in progress" with the judge. Thanks...

Resolving an objection in local court takes up to a year, max... I haven't heard of anyone taking longer than that. I always want to ask this one question: Why do you even care?

Ashley White said:Thanks for the input. Here's the deal: I don't have a steady paycheck right now because I'm unemployed, and the debt isn't even that astronomical—it's about $1,750. It all stemmed from losing a first-time homebuyer tax credit. I tried to set up a payment plan, but since I couldn't even manage that, the seizure was triggered—starting with the IRS...
If I've grasped this correctly, a divorce would shield me if the government decides to get aggressive about marital property, but since the amount is relatively small, they probably won't bother, right? So, can I just save the car by transferring the title to my wife?

Go ahead and transfer the car to your wife via a gift deed. Getting a divorce over that kind of money is insane. I thought we were talking about much larger sums here. Just focus on paying off the debt ASAP. Annual interest on these judgments is currently over 15%. Do the math yourself.

Ashley White said:The government has placed a levy on my bank accounts. Since they won't find much success there, should I be bracing for them to come after my physical assets instead? And if that's the case, is there any way to protect my car by transferring the title to my wife?

If the IRS has frozen your cash, sure, you can technically do whatever you want with your physical assets and real estate. To quote a lawyer friend of mine: "The government can kiss my ass." A levy on your property is just a matter of time. You could try transferring everything to your wife via a gift deed. The only real hurdle is community property laws, but honestly, I’ve never seen the government actually pursue that kind of route to collect debts. Even better, you could look into a divorce—it's mandatory under certain circumstances, and through the settlement, you can hand everything over to her.
With a divorce, you can work out a maintenance agreement based on specific sections of the Family Law regarding spousal support. Or you could set up an administrative garnishment against your wages. If kids are involved, you could set up an administrative order for child support. You have plenty of options. Of course, this assumes they've only blocked your checking accounts and haven't hit your paycheck yet—which, based on what you said, seems to be the case.
But this is only worth the effort if the debt to the IRS is massive, which I assume it is given the situation.
Just one question: Have you tried applying for a payment plan?

driftingnomad93 said:Greetings to all.

I recently caught wind of some chatter—though I seem to have missed the full news cycle on this particular matter—suggesting that service fees and independent contractor payouts might be exempt from garnishment. I find myself wondering if there is any truth to these rumors, and if so, what the practical implications would be for someone in my position. Furthermore, what would be the proper procedure for establishing a dedicated bank account specifically for receiving these contract payments?

I appreciate your insights in advance.

Check out the new law here:

They aren't "exempt." They're just subject to the same rules as regular salary garnishments, provided that's your only source of income (meaning you don't have a steady paycheck elsewhere). How do you execute it? Exactly like before. You get hit with the garnishment, run straight to the IRS to open a protected account, and list your exemptions. Then the IRS notifies everyone that, by law, that portion goes into the protected account instead of being seized—unless some special circumstances apply.

By the way, here's another loophole... an employer and employee can just agree to call a payment a "gift for a child" instead of a salary...
Bottom line: no massive improvements here...

hollowmason64 said:I’m not entirely sure why, but I’d be willing to bet they didn't even serve them the 🤣
properly.

I’d bet my life they delivered it. The issue is the "helpful neighbors," the "nice mailman," the "mailing address vs. residential address" mess, and plain old ignorance.
First off, let's talk about ignorance. These things start with massive bold letters saying MOTION FOR LEVY, and only much later, in tiny print, do they mention the actual details. Most people see that and think, "Oh, just some warning." Even the rare few who bother to flip the page and see the notary stamp think it's just a notarized warning. It's a direct consequence of how they phrase these "warnings."
Then there's the stupidity of thinking you can just fight back by claiming the system is "broken" because they can't freeze your account if you didn't receive the notice. Instead, the notice just gets posted on the court bulletin board and suddenly it's legally binding.

The "good neighbor" syndrome—where everyone is buddies with "George the mailman"—is a huge problem here. A neighbor grabs your legal mail while you're on vacation, tosses it in your box, or just sits on it for six weeks before handing it over.

Then you have the "good mailman George" syndrome, where he signs for your legal documents himself, leaves them by the door, and then the wind or some nosy neighbor does the rest.

On top of that, there's the whole residency issue. The mailman can't find you at your current address because you're renting, so they send the levy to whatever address is on your ID. Then we're right back to the "good mailman," the "good neighbor," or the court bulletin board loop.

This isn't even everything; it's just a fraction of what happens under the "I never got the notice" excuse. Sure, some levies have actual errors, but those are one in a thousand and get fixed fast—like a wrong Social Security number, for example. Unfortunately, the law doesn't offer any compensation for the victims, which is why these cases end up making the news.

ruggedmaker2 said:But there *is* an execution. 😉
That "administrative hold" thing? That's still an execution. It's just a garnishment where the debtor gives their consent.
In that lady's case, they were only hitting her wages (meaning her employer handles it), rather than seizing everything she owns (which is what the IRS does to every single account you have).
Both versions—the wage garnishment and the total asset seizure—are governed by the Enforcement Law.

Brandon Hill8 said:Bravo. I just highly doubt they'll actually wrap their heads around it.

An attachment is either a court order or a notary deed. Here. There’s no deal to be made. Period.The same agencies handle the enforcement—the IRS, the courts, all that. The debtor doesn't have any say in the matter. Collection follows a strict order: interest first, then costs, then principal. Interest is set by law, and the highest I've seen is 15% annually. Short and simple.

Under Section 202, Paragraph 1 of the CIA guidelines, we're looking at a private instrument from the debtor. Paragraph 2 of that same section defines its legal weight—it carries the same force as a final enforcement order and holds the status of a legal transaction under Section 77. I won't bore you with the rest. What does "legal effect" actually mean here? It means if they come after your wages, they can't touch a dime until that determination is finalized. Hope that clears things up.
An injunction or an administrative ban is basically just a contract between two parties. In this setup, the creditor and the debtor... They’re negotiating. That’s the key word right there. They think they can just sit down and cut a deal behind closed doors? Please. Everyone knows how this works. They talk, they scheme, they pretend everything is above board. But we see through it. What are they actually agreeing on? It’s always the same old story. Let’s talk about debt repayment models. It doesn't have to be a third of your paycheck; it could just as easily be a quarter. If you set it up via contract, you aren't bound by the mandatory relationship law where everything is strictly split between interest, fees, and principal. A debtor can actually insist on adding a clause that lets them pause payments whenever they want. Interest rates? Those are whatever you agree upon. As far as I know, before 2011, you didn't even need to have those documents notarized. Correct me if I'm wrong.
You’ll probably tell me that any creditor would look like an idiot if they agreed to terms like this. Sure, they would. I wouldn't agree to these kinds of conditions either if I wasn't backed into a corner just trying to collect what's owed to me. That’s exactly what that section of the CIA code allows—it gives debtors a way to play games and tilt the scales during negotiations.
A debtor signs a loan agreement with a reliable partner—just two bucks, enough to make the legal claim last a lifetime. Immediately after, they set up a garnishment for one-third of their income, or whatever the maximum allowed under mandatory relationship law, plus interest. They can send that garnishment for collection right away, or wait. That’s when the debtor walks over to the creditor and puts the squeeze on them to accept a better repayment plan. If the creditor starts playing games just to stall for time? Just hire an admin for your firm and open a protected checking account.
Why even bother doing this? It’s a direct response to those predatory mandates within the mandatory relationship law and the CIA regulations. They're trying to send a message: don't be malicious. Demand an interest waiver and a reduction in legal fees. Then, agree to pay off the debt in installments. And whatever you do, get everything in writing.

It’s pretty much the same deal with fake invoices during pre-trial settlements, though I bet some people know the ropes better than others.

Can you open a protected checking account that's exempt from garnishment? Absolutely. Just walk into any local clinic and you'll see how Medicare provides administrative exemptions to prevent them from automatically seizing monthly payments. Based on that paperwork, anyone can set up a protected account—I've seen it happen.
Sure, all these tactics are basically an abuse of the system, but if you look closely, even Medicare uses these same loopholes. I'm convinced they target retirees for these exemptions because they're the easiest group to manipulate with these shady schemes.
And listen, gentlemen, this kind of legal abuse needs to be proven in court. Anyone claiming this is just "technicality" either has skin in the game or has never stepped foot inside a courtroom.

I highly doubt you guys will actually get it.

Noah Reyes4 said:Alright, here's the deal.

I owe Verizon about $267. I called the IRS, and they told me that the collection matter tied to my SSN has been handed off to Law Firm XY.

So, what's the vibe here—is the execution already in motion? And if I just cough up the cash right now, will they pull the plug on the whole process?

I'm a student, and this is all pretty new territory for me. I'm kind of stuck; should I just sit tight and wait for a notice in the mail, or should I just pay it?

Thanks in advance for any help.

Call the law firm immediately and set a time to talk. Get ahead of them. Tell them the debt was paid ages ago and you have no idea what they're talking about. Make up a story: tell them you only found out about this when you tried to sign up for a new plan at a retail store, and they just sent you straight to the lawyers. Stick to the story. Don't hesitate, don't stutter. Demand an itemized breakdown of the costs—attorney fees, interest, principal—and tell them you'll fax proof of payment tomorrow. Once you get that breakdown, make sure you actually pay it. I assume you have the bills for those $267 with the reference number? Pay those exact amounts using that exact reference number. Then handle the attorney fees; if money is tight, the interest can wait a bit. Fax everything to the law firm once it's done. If the execution is already active, come back here and we'll tell you which parts of the execution you can skip if you pay within 8 days of receiving the notice. Just use your head and pay your debts.
Bottom line: don't sit there like an idiot waiting for fate to knock on your door. Fix the problem.

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

ruggedmaker2 said:Dead wrong!
You can open a protected account before a garnishment actually hits, sure, but only if you provide the paperwork proving that an execution is actually imminent.

Article 22.

(1) Under Section 212, Paragraph 1 of the enforcement law, the debtor is required to notify the IRS regarding any incoming payments or benefits listed under Section 172, or any amounts exempt from garnishment under Section 173, when dealing with fund seizures.

(2) If the IRS receives the notice mentioned in Paragraph 1 and finds nothing recorded in the registry as a legal basis for payment, they will accept that notice provided the debtor attaches a copy of the underlying documentation showing that a specific garnishment on their funds has been ordered.

I was a witness to this working. I saw a lady work things out with a Law Firm XY to agree to an administrative withholding on her salary just so they wouldn't freeze her checking account. There wasn't even an active execution yet—nothing had been filed. She went down to the IRS and got into a massive argument with the clerks who were claiming exactly what you two are saying. But look, the law clearly states you can't seize certain parts of a paycheck (depending on the pay grade), and it’s the debtor's job to notify the IRS about funds that are legally exempt from seizure. What if she had a levy hit her checking account while a withholding was already set on her wages? The IRS and the bank don't cross-reference anything; they just execute orders. (I know, it's hard to explain how messy this is). After arguing with the clerks and finally getting a legal specialist from the IRS called in, the lady pulled out a document proving the withholding was set, that a third of her income was already being diverted, and that she had notified the agency about her exempt earnings. Me and some other guy standing there signed off on it. She even asked if we'd be willing to sign it before a notary. Eventually, the legal advisor stepped back to consult a supervisor, came back, and told the staff to open the protected account for her. Bottom line: legal interpretations say one thing, but reality is often something else entirely.

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

The law says so, plain and simple. But everyone here forgets one thing: an execution is a risk for the creditor. There's always a chance they won't collect anything. A creditor will accept whatever the debtor demands if they actually want to see any money. If they don't care about collecting, they take the risk. That’s why I give people advice on how to handle it.
As if screwing over the creditor is some kind of science. We see examples of pre-settlement negotiations and fake invoices all the time. Is it hard to make up a fake loan agreement for, say, ten thousand dollars and immediately trigger an administrative freeze on assets and a third of a paycheck? (We've touched on this before, but it hasn't been explained properly). Not at all. A notary just verifies the signature. People even get divorced on purpose just so child support—which gets priority—can be collected. People sign documents claiming a parent abandoned them or failed to meet obligations. One interesting legal loophole: the statute of limitations resets whenever the debtor acknowledges the debt. So, a parent signs a paper admitting they owe child support for the next 20 years of a kid's life. Sure, it's shady, maybe even an abuse of rights, but you have to prove it in court, right? You bring in a neighbor as a witness who swears, "Oh, he's a saint, and she's just being difficult," and suddenly your whole case collapses like a house of cards.
The reality is that uncollectible executions are increasing because once people get over the initial shock, they realize how to game a system that was designed to crush them. That's exactly why banks offer settlements for just the principal amount.
I always aim for a fair relationship between creditor and debtor. A person owes money, and they should pay it. But not in a way that lets them get robbed. Based on that, I give the advice I give here on the forum.

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

From what I can gather, the gentleman isn't facing an actual execution yet; he just got a warning notice. Until an execution is officially ordered, he can and should dispose of his property however he likes. Even during an execution process, if the creditor specified a garnishment of wages or bank accounts, he can still manage his other assets however he wants.

Honestly, here is what I would do if I were him. Since there is no execution yet, everything is legally clean regarding transferring assets. I'd gift the property to a minor or quickly sell off excess real estate. I’d sign a fake loan agreement for ten thousand dollars with someone close to me. After a week, I’d sign a document acknowledging the restriction on disposing of property and wait like a coiled spring. Then, I’d head to a Law Firm XY to negotiate. If they grill me too hard, I’ll just walk over to the bank's legal department, explain the situation, and offer an installment plan for the principal and legal fees. We’d wrap it all up in a formal contract, of course.

Megan Ross20 said:Hello everyone, and thanks in advance for any insight you can offer. I apologize if this has already been answered, but I’m honestly so worked up right now that the more I read, the less I seem to process...

Here’s the situation. I just received a demand letter from Leka & Partners because I haven't been keeping up with my Mastercard payments. They’re demanding $10. I lost access to a specific stream of income I was using to cover those Mastercard bills, and between the principal and the interest, the total has ballooned to that amount. It’s not that I’m trying to dodge my responsibilities—I want to pay what I owe—but right now, I simply don't have the funds to cover the full balance, let alone even the minimum revolving payments I used to manage.

Now I’ve been given an eight-day window to settle the entire debt in full. I don't have the money, and if I don't comply, they claim they will pass a motion for execution to a notary public. (What does that actually imply?)

The letter states the following:

"Please be advised that—should you fail to remit payment as described above—our firm will initiate proceedings to recover the aforementioned claim from your wages, pension, or any other movable or immovable assets, for which we possess precise data and all necessary legal authorizations." Where on earth are they getting this data from, and what "assets" could I possibly have? I’m just a renter; there is absolutely nothing in this apartment that belongs to me...

Furthermore:

"In order to avoid additional costs and inconveniences at your place of employment or residence, we once again urge you to settle your debt before we commence formal forced collection procedures..." Inconveniences??? What kind of inconveniences are they talking about??? What exactly are they planning to do???

And finally:

"We also inform you that our office, acting in strict accordance with our client's instructions, will file criminal charges for fraud under Article 224 of the State Archives code should you fail to meet the aforementioned deadline."

What am I supposed to do now? Should I look into setting up a protected account through the IRS? Please, I need some advice. At this moment, I have no way to come up with an amount like 😢

Thanks.

It means the law firm is going to start seizing your assets.
So you were just living large on those cards? Married a sugar daddy or something? 🙂
By the way, what kind of limit did you have on that Mastercard that you could pull that much credit? $10 That means your take-home pay had to be at least $3.25 net. You must have been working some high-level management job.😉

Megan Ross20 said:Hello everyone, and thanks in advance for any insight you can offer. I apologize if this has already been answered, but I’m honestly so worked up right now that the more I read, the less I seem to process...

Here’s the situation. I just received a demand letter from Leka & Partners because I haven't been keeping up with my Mastercard payments. They’re demanding $10. I lost access to a specific stream of income I was using to cover those Mastercard bills, and between the principal and the interest, the total has ballooned to that amount. It’s not that I’m trying to dodge my responsibilities—I want to pay what I owe—but right now, I simply don't have the funds to cover the full balance, let alone even the minimum revolving payments I used to manage.

Now I’ve been given an eight-day window to settle the entire debt in full. I don't have the money, and if I don't comply, they claim they will pass a motion for execution to a notary public. (What does that actually imply?)

The letter states the following:

"Please be advised that—should you fail to remit payment as described above—our firm will initiate proceedings to recover the aforementioned claim from your wages, pension, or any other movable or immovable assets, for which we possess precise data and all necessary legal authorizations." Where on earth are they getting this data from, and what "assets" could I possibly have? I’m just a renter; there is absolutely nothing in this apartment that belongs to me...

Furthermore:

"In order to avoid additional costs and inconveniences at your place of employment or residence, we once again urge you to settle your debt before we commence formal forced collection procedures..." Inconveniences??? What kind of inconveniences are they talking about??? What exactly are they planning to do???

And finally:

"We also inform you that our office, acting in strict accordance with our client's instructions, will file criminal charges for fraud under Article 224 of the State Archives code should you fail to meet the aforementioned deadline."

What am I supposed to do now? Should I look into setting up a protected account through the IRS? Please, I need some advice. At this moment, I have no way to come up with an amount like 😢

Thanks.

That part is purely psychological. Just a scare tactic to make you shit your pants so you'll scramble to pay the debt immediately.

Megan Ross20 said:Hello everyone, and thanks in advance for any insight you can offer. I apologize if this has already been answered, but I’m honestly so worked up right now that the more I read, the less I seem to process...

Here’s the situation. I just received a demand letter from Leka & Partners because I haven't been keeping up with my Mastercard payments. They’re demanding $10. I lost access to a specific stream of income I was using to cover those Mastercard bills, and between the principal and the interest, the total has ballooned to that amount. It’s not that I’m trying to dodge my responsibilities—I want to pay what I owe—but right now, I simply don't have the funds to cover the full balance, let alone even the minimum revolving payments I used to manage.

Now I’ve been given an eight-day window to settle the entire debt in full. I don't have the money, and if I don't comply, they claim they will pass a motion for execution to a notary public. (What does that actually imply?)

The letter states the following:

"Please be advised that—should you fail to remit payment as described above—our firm will initiate proceedings to recover the aforementioned claim from your wages, pension, or any other movable or immovable assets, for which we possess precise data and all necessary legal authorizations." Where on earth are they getting this data from, and what "assets" could I possibly have? I’m just a renter; there is absolutely nothing in this apartment that belongs to me...

Furthermore:

"In order to avoid additional costs and inconveniences at your place of employment or residence, we once again urge you to settle your debt before we commence formal forced collection procedures..." Inconveniences??? What kind of inconveniences are they talking about??? What exactly are they planning to do???

And finally:

"We also inform you that our office, acting in strict accordance with our client's instructions, will file criminal charges for fraud under Article 224 of the State Archives code should you fail to meet the aforementioned deadline."

What am I supposed to do now? Should I look into setting up a protected account through the IRS? Please, I need some advice. At this moment, I have no way to come up with an amount like 😢

Thanks.

Call the Law Firm XY and set up an appointment. Explain your situation and negotiate a payment plan based on what you can actually afford. Try to agree to have an administrative garnishment placed on your income capped at one-third of your paycheck until the debt is cleared. When negotiating that garnishment, avoid any sentence that mentions interest. Focus on paying off the principal first. If they refuse to cooperate, send a formal written notice to both your bank and the law firm making the same request. Send those inquiries to the processing department at the bank and the law firm, or via certified mail so you have proof they received them.
Here’s the catch. The catch is that an administrative garnishment is basically just another form of execution, except you get to decide what gets paid off first—and it's better for you to tackle the principal first. Any refusal from the creditor to allow this is just their attempt to screw you over and rack up extra fees.
And finally, regarding the part about seizing assets—it's also a good idea to transfer the title of your personal property and real estate to someone who doesn't have any liens against them, if you think you won't be able to meet the obligation.

Susan Chase70 said:That 8-day window is just an arbitrary deadline they give you before they initiate an execution proceeding based on a credible instrument. Usually, they do this based on some ledger extract, a contract, or other documents proving you took on an obligation or owe a debt.

The "data" likely refers to all the documentation from Mastercard showing your obligations. Your paycheck and your accounts are things they can target for an execution.

As for the criminal charge of fraud... whether that's just a bluff or not, you can decide that for yourself.

A protected account isn't even an option until you are officially in default/blocked.

Your best bet is to call them and try to negotiate a waiver of interest and a payment plan.

Anyone can open a protected checking account whenever they want. It doesn't matter if there’s actually any threat of being sued or garnished. You just send a letter to your employer and reroute two-thirds of your paycheck straight into it immediately. Simple.
If you're facing any kind of garnishment, opening a new account isn't some luxury—it’s a necessity. It's pure prevention. The IRS and your bank don't give a damn about the law or whether they're only supposed to take a third or half of your paycheck. If even one cent hits that frozen account? They'll grab the entire damn thing.
Based on what I’ve seen from everyone posting here, getting back funds that should have been exempt from execution comes down to one thing: whether the creditor actually feels like being a decent human being. It’s entirely up to their good will. Honestly, I haven't run into anyone who actually sued the bank, the IRS, or the creditor for violating the enforcement law—you know, when they seize an entire paycheck or funds that are legally protected. Why? Mostly because people are too broke to afford a lawsuit, and frankly, most lawyers won't even touch it because there's no money in it for them. Is it worth it? Probably not. 😉

Kimberly Robinson49 said:Here’s the situation—and I am genuinely curious if anyone here has the legal insight to make sense of this mess! So, we have someone who lived in a household where all the utility bills were officially under their name—including the municipal services for the city they resided in (not New York City, by the way)—and now they are moving out. Suddenly, a notice regarding a 2008 writ of execution arrives for unpaid utility fees from back in 2011, a year when those bills were strictly tied to that specific individual. But wait, it gets even weirder! The city is actually sending out two separate notices for that same year: one addressed to the person whose name was actually on the account, and a second one addressed to another adult living in the house—someone who was never registered as the account holder, isn't the homeowner, and was simply an adult member of the household. How is that even legally permissible? It seems like the city is just trying to squeeze money out of anyone they can find, but how can they issue a notice for execution to someone who wasn't even on the bill to begin with? They even included a specific payment slip with that person's full name on it! Does this mean that utility bills and subsequent notices for execution can be sent to any random adult living in the house, regardless of whether they are the actual account holder?

First off, how sure are you that these are actually notices before execution and not the actual executions themselves? As for whether an execution can hit a second person—yes, it can. But explaining the specific conditions for that is a waste of time because you described your situation like a fifth-grader writing their very first homework assignment.

Jeffrey Long said:The notary public submitted the motion for execution on January 18, 2008 (though it only reached me yesterday 🙄). The core issue is that looking at this specific motion, I can't tell exactly when it was officially filed, which makes it impossible to determine if three or four of these bills have already hit the statute of limitations window.

A motion for execution needs to state the exact date the notary received it. That’s the notary's job.
The statute of limitations runs from that specific date.
If you're 1000% sure there's no date listed, you can file an objection stating everything is expired. Better yet, you could argue the motion for execution should be rejected for being incomplete due to the missing receipt date (I've run into this before with clean liens, so it's not my first rodeo). It might be too late for advice now, though, so sorry. 😉
If a motion gets tossed for being incomplete, it's effectively like it never existed, which means the statute of limitations wouldn't even start counting from the 2008 writ of execution (I need to double-check that part). If that holds up, any further legal moves the creditor makes in civil court are useless because what's incomplete legally doesn't exist.

Jacob Reed5 said:Hey there! I need some advice regarding a bunch of questions about a ridiculous amount of money. It’s pretty complicated... 🙂🙂

So, my dad missed one water bill back in 2003. A pipe burst right in front of our building, and at first, the HOA representative told everyone not to pay because it wasn't actual usage, but then later he changed his tune and said the water company was demanding payment. So, it wasn't paid. In 2005, a 2008 writ of execution shows up under both my mom and dad's names—since they were both on the account—for the unpaid balance from all of 2003. By 2006, a motion for execution comes through that splits the proceedings, separating my dad's case from my mom's. (I don't know if anything happened between then and now; documents went missing, and maybe my dad filed an appeal or something). After that, it was just a cycle of court dates, rulings, appeals, more rulings, more appeals... finally, a ruling was handed down in 2013, where the payment receipts apparently proved everything was settled except for $117. That ruling states he owes $117 + $23 in court costs plus fees of about $6.75. But elsewhere, it totals $217 as the amount due. Nowhere does it say how or to whom this should be paid, and no invoice was ever sent. My mom isn't even being notified about any of this. Then, around 2012 (?), a writ of execution for $117 arrives in her name from the water company, without any instructions on what to do next.

Yesterday, a woman shows up at our door claiming to be a process server/bailiff. Mom was in the shower, so I told her to wait outside so we could talk, but the woman insisted on coming inside. Mom came out and asked what was going on, but the woman refused to explain and just wanted to get in to inventory our belongings. I asked if she had documentation proving she was a bailiff and who she was, but she refused to show anything. I asked if she had a document authorizing her to inventory our things, and again, she refused to show it. I asked which law gives her the right to enter a home without official documentation or a warrant, and she just snapped back asking if I was a lawyer. Since I'm not, I just stayed quiet because I didn't have an answer. My dad asked her where she went to law school, and she basically said she didn't even finish college (so much for a meaningful conversation...). We refused to let her in after she threatened to come back with the police to bash the door down because we wouldn't let her inventory the house. She left a paper saying we weren't home and that they'd just force their way in next time. I searched the court website for the name she gave, but couldn't find any record of her as a bailiff.

Questions—
How can I find out if my dad actually paid that debt at the courthouse?
If they split the files, is it possible to collect two separate debts from two people when there was only ever one single debt?
Can we request to see her specific case file?
Shouldn't she have been summoned to court at some point too?
Can we contest her ruling by using his, since the total debt is only $117, which was what they ordered him to pay?
Who is responsible for paying if he hasn't? Is it Mom, Dad, or both?
If they both pay, should they request a refund and a reversal of the judgment?
An attorney is definitely going to cost way more than the $217 required by Dad's ruling, and certainly more than the $350 mentioned in the writ.

And did that woman follow proper procedure?
If I want to file a formal complaint against her because she was so rude, who do I send it to?
Is she legally required to show documentation proving her identity? I mean, a cop has to show a badge if I ask, and I can verify them by calling the precinct. Could this have been a scammer? I highly doubt the law requires absolute blind faith in a bailiff's word to the point where they don't have to show official ID or even a driver's license upon request.

Anyway, I would have paid that $117 a long time ago if anyone had just told us how and where. But I am not paying twice, and I honestly can't deal with... anyone who thinks basic decency doesn't apply just because they work for the state.

Thanks!

Pffft... you guys have overcomplicated this to death...
First thing's first... The court order says you owe $217 (rounding up since I haven't seen the actual paperwork). I am 2000000% certain that the order specifies you owe that amount to the plaintiff, including their full legal name, SSN, and address. You've been playing dumb this whole time (to put it politely). Your job was simple: pay the debt to the creditor's account and the fees to the court, or wherever the damn order instructed you to.

Furthermore, regarding the execution against your mother (honestly, I had to laugh at that "not sure what to do next" part—kind of like when people at T-Mobile say, "Whoops, we're being a bit too playful here" 🙂), you should have filed an objection. You should have explained that the matter is ongoing and provided the necessary documentation. Instead, you did what most people in this country do... you didn't file an objection, you probably just went off fighting with some law firm, and let the execution become final...

As for the bailiff and his conduct, go ahead and take that stack of papers to the police and file a report for impersonation. The police are required to explain your rights based on that and they have to take your report. It probably won't accomplish much, but hey, you never know... if you stay persistent, maybe some clerk gets a reprimand. Nothing will happen, but it makes you feel better, right? Just make sure you coordinate your statements about what the creditor looked like. Don't let Mom say he had blond hair while you swear he was a brunette, or get wrong about his eye color...

What now? Long story short, you have a final court order against your father for $217 plus a finalized execution against your mother. In both cases, under the law, you are obligated to pay the full amounts. The only move you have left is to take all your documentation to the creditor and negotiate exactly what needs to be paid, since they tried to collect the same amount twice. Naturally, having the paperwork from those conversations is mandatory (since they won't tell you anything and just point you back to the law firm...). So, feel free to threaten them with a lawsuit for attempted fraud.
In any case, if you end up paying the same amount twice, you can sue them. Capitalism gave us debt collection agencies for a reason... you could take your documents to them, sign a contract where you waive any risk, they pay you whatever you agree upon, and then they go after your claims—which would technically be theirs now.
Or you can hire your own lawyer and go fight for justice and what's right...
Or you can write a letter to Obama...

You have a million options. But the biggest issue here is your sheer lethargy and how careless you've been about all of this.

BTW, a pipe burst in my building recently and flooded people's apartments. It didn't occur to us to stop paying the water bill. So, feel free to give your HOA president a good smack for giving such "top-tier" advice. 😉

vividsailor19 said:Hey everyone... I need some urgent help here, so if anyone could give me a quick answer, I'd really appreciate it. I tried searching for this thread, but it just keeps redirecting me to page 117, where there’s absolutely nothing about this topic.
I just got laid off, and since I'm eligible for severance, I'm wondering how exactly they're going to deposit it. It'll go straight into my checking account, even though I have a protected account set up. If that money hits my regular account, I can kiss it goodbye. Is there any way to save it before it's gone?

Look,

Please pay the severance into checking account IBAN ................. owner Mark Markovic, Markovic's address, 156964 Drpina Lower.

But first, ask whoever is paying you if that's an option. I don't see why it wouldn't be—most people handle it exactly how I wrote it.

Faking a pay cut just so they have nothing left to seize
Doesn't work... whether it's a tiny paycheck or a big one, they're still grabbing a third of it regardless...
Quitting and working as an independent contractor
Quitting and working under the table
And what happens when you retire?
A total mess and a shaky foundation
After you die, your heirs take over whatever is left of the estate... if you were married, the enforcement office can play the marital property card

So this isn't an option, it's a necessity...
A fake divorce and paying alimony to an "ex" wife

Got kids? Even better.

Here's how it works: an administrative wage garnishment. If it's child support, it's one thing, but if it's just alimony for a spouse, you have to quit first. Your employer has to provide proof that you no longer work there, then they rehire you for a different position. Upon being rehired, you submit the garnishment order immediately so it takes priority on the payout. This setup lasts until the kid turns 27. For spousal alimony, this only works if the wife isn't working (and obviously, you need massive trust between you and your boss to pull this off).
Furthermore, you sign a loan agreement$67 (let's say, for security, a $500,000 loan) with your wife. You set up a garnishment for that debt, specifying that interest accrues from the moment of the loan at the Federal Reserve rate plus x percent (or whatever the standard is).
So, while the kids are under 27, the child support gets deducted, and then this debt from $167 gets hit. By the time that rolls around, thanks to the interest and these perfect seizure laws, the debt becomes uncollectible.
Of course, your gross salary can't be more than twice two-thirds of the average US salary (which is currently about $2400). Why? Because by law, if your pay exceeds the US average, I won't even tell you what comes next—it's transferring all your assets to your kids and pulling every cent of savings out of the banks into your own name.

Needless to say, all of this falls under "abuse of rights." But proving it is damn near impossible. You’d have to be stupid enough to go around bragging to your friends about what you did.

Hopefully, it's clear now why banks target single people when issuing loans.

Angela Sanders3 said:Hey everyone,

I have a problem, and honestly, I'm too embarrassed to ask anyone in real life. I’m a student who thought I was being smart two years ago by getting a phone contract, but then things got tight and I missed some payments. Basically, I went from November last year until February without paying, which triggered a notice saying they’d cancel my service (contract ends in June), terminate the agreement, and start debt collection. I have a checking account where I’m expecting a small paycheck from my campus job, and now I’m spiraling wondering if my account is already frozen or when it might happen. Will they grab the $200 as soon as it hits? I'm lost. The agency handling the collections is Prima Solvent—does that mean it gets automatically deducted? Or if I know exactly when the deposit lands, could I move it out before the IRS gets involved? fin :P

Look... have you actually received an official seizure notice yet? Do you even know how that works? How are you supposed to know if your account is frozen? Just go to your bank and ask them if your account is blocked. It's that simple.

Ryan Lee2 said:The thing is, she didn't own any real estate. The only thing she had was a burial plot (and even then, we only inherited a 1/4 share), which was worth about $2000. We’ve already settled the debt she owed to the bank. Now, out of nowhere, they’re trying to freeze my dad’s pension without even sending him an official notice or anything. I’m honestly terrified that if we file a lawsuit, it’ll just turn into a massive, expensive clusterfuck, but looking at how things are going, it feels like our only move left.

I already told you. Social Security isn't part of inheritance law; it's governed by federal retirement laws. I don't know the specific statutes off the top of my head. But I checked with two different sources, and both gave me a very clear answer: NO.
My advice? Hire a damn good lawyer. I'm not giving you a referral.

Ryan Lee2 said:So, my dad just started receiving survivor benefits after my mom passed away. She had some outstanding debts and garnishments tied to her accounts that she was paying off. Now that he’s officially opted to waive his own pension to take over hers, is it actually legal for those old collectors to come after his money too? Like, can they just attach her old debts to his new income?

I checked with two different sources. Here’s the deal. Taking over a survivor benefit is a statutory right, not an inheritance. That means there's no way creditors can jump on his pension based on her old debts. They might try to sue him over marital assets later, but that's a different story. Or they could target any property still sitting in her name.