Wage garnishments and collections

HELP!!!

Someone I know just got hit with a garnishment for an old bill from $533 regarding ice cream supplies—it’s for a restaurant they used to run maybe 8 or 9 years ago. If they don't settle this, the collectors are coming for their car, which is pretty much everything they have left. They actually filed an appeal against the whole thing, though I'm not entirely sure about the specifics of the case. Well, about ten days after sending the appeal, they just got a notice saying they need to bring the car down to the police station.
I think I read somewhere that they can still move forward with the seizure while an appeal is being reviewed or whatever. But that’s the part that doesn't make sense to me—by what right can they take the car if the appeal hasn't been officially approved or denied yet? Plus, he wants to just pay the money and be done with it, but there’s nowhere to send it. He didn't get an actual invoice with payment instructions, and while the garnishment lists a few names, there isn't a single contact number for anyone involved. We tried looking up the number for Nestlé online and we've been calling them all day, but they just keep saying someone will call us back. No one will tell us where to send the payment or even explain what this charge is actually for... I guess I'm just wondering, are they actually allowed to show up and take the car via the police???

No, they aren't going to come swarming out of the police station to impound the car.👍

hollowmason64 said:Sorry, I'm a little confused by one thing—why doesn't the person who actually took out the loan just sell the car to pay off whatever is left? Or better yet, why aren't you asking them to do that?
Do you realize that if they start garnishing your wages, the overall costs are going to end up being higher since they won't be able to cover the full monthly payment anymore?

Because the loan holder refuses to sell the vehicle! Do I even have any legal standing as a co-signer to demand that the car be put up for auction? And what happens when the bank eventually seizes the car?

Karen Bishop2 said:Because the loan holder refuses to sell the vehicle! Do I even have any legal standing as a co-signer to demand that the car be put up for auction? And what happens when the bank eventually seizes the car?

Well, if things were headed that way, I’d honestly just file a lawsuit against them. In the filing, I’d immediately ask for a lien on the car—basically a legal freeze so they can't sell it or transfer the title to anyone else without you knowing...
Once they get a notice from the court about the lawsuit and that request, they’ll realize they have two choices: either sit down and work out a deal with you, sell the car, and reimburse you for those attorney fees you racked up, or take it to trial, where it’s going to cost them a whole lot more in the long run.

Maybe check in with Brian Edwards6 or one of the mods to see if there's a way to file an official report; they should be able to give you some guidance on that.

Karen Bishop2 said:Because the loan holder refuses to sell the vehicle! Do I even have any legal standing as a co-signer to demand that the car be put up for auction? And what happens when the bank eventually seizes the car?

Well, I suppose it really depends on a whole bunch of different factors—like, say, how many monthly payments are actually left before the loan is fully paid off... though, I suspect the bank has already gone ahead and placed a lien on the title to prevent anyone from selling it anyway...

Listen, I need some help. I just got hit with an enforcement order yesterday because of some unpaid AT&T bill handled by a collection agency, complete with signatures from a notary and a lawyer!!

So, here's the deal: I have this old AT&T bill from $61. A week ago, they sent a final notice to my home address. But since I've been living in New York City for five years for college, I totally missed it. Didn't see it, didn't pay it, and boom—exactly one week later, the ENFORCEMENT hits. I'm losing my mind here. The legal fees alone are $153 while the actual debt is $61... what am I supposed to do???
Look, I get it. I should've paid the bill, and I will... but I am NOT paying an extra $153 on top of everything else.
I called AT&T thinking I could just settle the bill plus interest, but they basically told me it's none of their business and that I don't owe them anything anymore!?
What's my move...

Thanks in advance for any advice

I’m assuming the window for an appeal has already slammed shut and the judgment is final. You don't really have a choice here—you just gotta pay up.
Look, next time you get a warning letter, don't just ignore it. Reach out immediately. Try to negotiate a payment plan or some kind of settlement so you aren't stuck footing the bill for extra legal fees and penalties on top of everything else.

ruggedmaker2 said:I’m assuming the window for an appeal has already slammed shut and the judgment is final. You don't really have a choice here—you just gotta pay up.
Look, next time you get a warning letter, don't just ignore it. Reach out immediately. Try to negotiate a payment plan or some kind of settlement so you aren't stuck footing the bill for extra legal fees and penalties on top of everything else.

The appeal deadline hasn't passed yet. My folks signed for the delivery two days ago this past Monday, so I still have time to file.
Is there even any point in appealing? And on what grounds?
Also, how much extra am I looking at if I don't win this case?
🙂
thx.

If you just pay it off, the total damage is $333. But if you wait more than 8 days, you're looking at the bill plus legal fees. Maybe try actually reading the thread for once.

darkseal21 said:If an account gets seized, who gets paid first—JPMorgan Chase or the government clearinghouse? If money flows into the account, does JPMorgan Chase grab it first to cover a negative balance, or does the clearinghouse take priority? Thanks for the help.

The IRS grabs their cut first, then they start chipping away at the fees, then interest, and finally the actual principal amount...

Yeah, I’m just so proud of myself... a JPMorgan Chase envelope just arrived in the mail, and it’s a final notice before legal action kicks in...

The whole mess started two years ago when I lost my job. Back then, I had a massive overdraft limit, and yeah, I was forced to rely on it.
But at the start of 2012, they slashed that limit drastically. Since I’m still unemployed, I have no way to cover the gap. So, I took out a loan from JPMorgan Chase. Was I aware of the insane interest rates? Of course. But I did the math, crunched the numbers, and came up with a plan: I’d borrow enough to wipe out the overdraft entirely, plus enough to cover the monthly payments for a year. My logic at the time? I figured I would "definitely" find a job within twelve months. I kept the monthly installments low so even if I landed a low-paying gig, I could still manage.

BUT

I am still unemployed. The overdraft is maxed out again, I’ve got some small credit card debt piling up, and now—today—this freaking envelope arrives.

I knew this day was coming. I actually went into the bank around New Year's to try and "work something out." But we didn't reach an agreement because
1) at that time, the bank didn't even consider me a delinquent since all the loan installments had been paid on time.

2) the representative simply refused to accept the fact that I was still using my overdraft (even if it was reduced) based on my unemployment benefits and one back-payment from a 2008 bankruptcy settlement. She actually thought it was hilarious that I was playing it safe by keeping my payments under $100.

Well, whatever. Right now, $6.75 I’m probably worth less than a billion bucks to them. I'm glad I can provide her with a good laugh.

She tried to convince me the bank wouldn't classify me as a debtor until three months after the first missed payment. And like a fool, I fell for it...

For the record, I don't own anything. I live with my mom (who is retired) in her house, and I drive her car.

Can anyone explain what this legal seizure actually means for people like us? I mean, what exactly can they seize?

I have some leads on seasonal work, but I don't even have money for the bus ticket. 🙂

Oh, I forgot to mention: I stopped checking in with the unemployment office. I took every cent I could get and now I'm just trying to preserve my sanity. I'm mentioning this because I heard rumors about a moratorium for the unemployed. Not that it matters—the IRS had no problem issuing my tax refund (as a dependent).

Just head down to the bank and find someone you can actually explain what an attachment means to you, since you don't have any assets or property to their name. I guess I don't know how JPMorgan Chase handles this—like, do they send notices through local branches or just dump stuff like this over to some corporate headquarters that manages bad debt? Try to figure that out first. You don't want to end up negotiating with some guy at a branch who’s totally clueless and has zero power to help you (there are plenty of idiots out there). Basically, find out who actually owns your file and who’s in charge.

Second thing, just pay whatever you can afford, $6.75, $6.75, $33, $33. If you can swing more, great. It’d also be smart to keep the payments on a regular schedule.

Besides, they don't really have anything to seize, and if you trigger an attachment, they'll just hit your accounts (which are empty anyway). Obviously, the headache is that the debt will grow because of the collection fees—depending on the main balance, maybe $1,000 to $667. Don't worry, nobody's gonna show up at your door. Once you land a job, if they try to garnish you then, you can just open a protected account.

Third thing, banks usually sue for overdrafts and credit card debt separately (if it's a legit credit card and not tied to your checking), so don't be shocked if you suddenly get slapped with two different attachments.

Thanks, Chloe Murphy3

But, if I’ve got this right, we’re looking at three potential collection agency scenarios: an unauthorized overdraft, a loan default, and credit card debt. So, basically 3 x $1,000-$667 🤷 while my total interest on the loan was less than $500? Seriously, look at me go!

I'm pretty sure the loan is tied directly to your checking account, right? Like, I've got one myself and I never even get a bill in the mail—it just hits my balance via autopay. If we're talking about the same thing, then if the rest of the balance drops all at once, it should just show up as a negative on your checking statement. I guess it’s cold comfort, but hey, at least it isn't three separate payments.

Yeah, you're right. There isn't even a bill sent out; the money just gets pulled automatically from your checking account.

But seriously, don't mess with me—what do you mean by "the balance due all at once"? How is that even possible?

Look, just read the fine print on that loan. There’s probably some clause in there saying if you miss a couple of payments in a row, the whole damn balance becomes due immediately.

Hey everyone—I just received a legal notice regarding my bill from $33. I actually settled the balance, though I was about 20 days late—so, what kind of fallout should I be expecting?

So, after an attachment is deducted, am I supposed to be left with 2/3 of my paycheck, or can they legally drop me down to just 1/3 on protected earnings? Basically, once my loan and the garnishment hit, my employer is only cutting me a check for 1/3 of what I'm owed.

The foreclosure was ruled invalid
When does the statute of limitations actually start running on a claim based on a purchase agreement once a court finally rules that the foreclosure is inadmissible?

1. Right from the jump? Like, the initial attempt at foreclosure didn't actually pause the clock?
2. From the moment that ruling becomes final?
3. Or maybe from the day the stay on the foreclosure—based on that ruling—officially kicks in?