Wage garnishments and collections

Chris Hayes16 said:Is an Extract of Open Items actually a valid document to use when filing an enforcement motion? We haven't verified or signed off on the IOS yet.

Well, it doesn't necessarily have to be signed off by the debtor side at all...

But does filing an appeal against a garnishment actually put things on hold?

So, what even is an "appeal against a levy"
?

Hi everyone,
I’ve found myself in a bit of a complicated situation lately, so I was hoping someone here might have some insight or advice to share.

Basically, a while back, a freeze was placed on my guarantor's bank account due to an unpaid lease. We never actually received any official notice about the collection process, but since we were well aware the debt existed, we didn't jump to act until we could settle it in full. Well, the debt has been paid now, but in the process, the leasing company started tacking on these extra fees that aren't even in our original contract. I've already sent two formal complaints to them, but they seem to be playing games by dragging their feet on responding.

While they're busy stalling, a brand new levy has hit my guarantor's account for this same disputed amount—which, according to our contract, shouldn't even exist. And once again, there was zero prior notice! From what I understand regarding US legal procedures, a notary or a similar official should have sent over a formal notice of execution, but I'm feeling a bit lost on how to proceed. Is there a way to legally contest this and halt the current seizure, especially since I was never given the chance to file a formal objection in the first place?
I would truly appreciate any answers or guidance anyone can offer. 🙂

Let me guess, his guarantor signed off on a promissory note? That's probably the only way they could freeze his accounts without even giving him a heads-up.

Chloe Murphy3 said:Let me guess, his guarantor signed off on a promissory note? That's probably the only way they could freeze his accounts without even giving him a heads-up.

Uhhh... looks like that might be the case, but he "doesn't recall" doing it! 🙂 Does that actually change anything legally? Can they legally seize funds without serving an official court order or judgment first? I'm wondering what kind of steps can be taken to challenge this.

Well, now I’m starting to wonder about a few new things... is it actually possible for them to launch two separate collection proceedings based on just one single promissory note?

The promissory note is probably for a bigger amount, maybe $16667. The creditor sent it over to the Federal Reserve with a note saying "they owe this much," and then more costs popped up later that they're also on the hook for, so they just sent another notice saying "now they owe this much too."

Basically, the creditor can go after whatever is due. If part of the debt became due after they already sent the note to the Federal Reserve for the initial amount—but the note covers everything since it's all from the same deal—there's no reason they can't demand that extra bit too.

I'm making this sound complicated, but I hope you get what I'm saying. If someone is paying this as a guarantor, the creditor will eventually give them a receipt showing exactly how much was paid so they can sue the main debtor to get their money back.

The easiest way to check is through the Federal Reserve. Just ask for the details on the specific enforcement order being used; it should all match up under the same OV-... number.

Chloe Murphy3 said:The promissory note is probably for a bigger amount, maybe $16667. The creditor sent it over to the Federal Reserve with a note saying "they owe this much," and then more costs popped up later that they're also on the hook for, so they just sent another notice saying "now they owe this much too."

Basically, the creditor can go after whatever is due. If part of the debt became due after they already sent the note to the Federal Reserve for the initial amount—but the note covers everything since it's all from the same deal—there's no reason they can't demand that extra bit too.

I'm making this sound complicated, but I hope you get what I'm saying. If someone is paying this as a guarantor, the creditor will eventually give them a receipt showing exactly how much was paid so they can sue the main debtor to get their money back.

The easiest way to check is through the Federal Reserve. Just ask for the details on the specific enforcement order being used; it should all match up under the same OV-... number.

I see what you mean, and thank you so much! It sounds like the amount is indeed higher... they clearly want to squeeze every cent out of that 😁. But how do I actually challenge this? The charges hitting the account fly right in the face of the signed contract—we've gone through it thoroughly, and what they're demanding simply has no basis in reality. So, now that the seizure has already been carried out, how do we stop this whole thing since it's completely unfounded? 🙂 Is this the right time to bring in a lawyer and maybe even reach out to the media? 😁

Threaten them with a lawsuit and the press. Sending a formal letter from a lawyer usually does the trick. But honestly, just be certain they actually overcharged you illegally... I guess.

I’m about 99% certain, but I definitely need to run this by my attorney first just to be absolutely sure... honestly, I was really hoping to dodge any extra legal fees here... 🙄. If they won't settle this on their own, I guess we're looking at a lawsuit. My only worry is how long that process drags out while they continue to bleed my account dry... what a headache. Thanks again for everything! 🙂

Chloe Murphy3 said:So, what even is an "appeal against a levy"
?

My bad, I actually meant the actual levy order itself—you know, the paperwork you pick up at the local Post Office.😁

granitefalcon15 said:My account just got frozen due to a levy. I rely on regular social security benefits coming into this account. I actually went ahead and set up a protected account at my bank through the IRS back on April 4th, making sure to provide my SSN and the sender's info for those social assistance payments.
The social security funds hit my checking account on April 5th because the agency hadn't received the specific protected account number yet.
Then, on April 8th, the bank went ahead and handed over the entire amount of my protected funds to the creditor—even though my protected account was already active. Is there any way I can demand they reverse the transaction and return the money they weren't supposed to release? Since the protected account was already open, shouldn't those funds have been shielded?

Thanks

Regardless of whether the protected account was open, the bank is legally obligated to transfer any incoming funds from a frozen account to the creditor. Since six days have passed, the money has likely already landed in the creditor's account, making recovery nearly impossible. The creditor is the only one who can return the money, but don't expect them to; after all, it's their money now.

analogwalker45 said:I’m about 99% certain, but I definitely need to run this by my attorney first just to be absolutely sure... honestly, I was really hoping to dodge any extra legal fees here... 🙄. If they won't settle this on their own, I guess we're looking at a lawsuit. My only worry is how long that process drags out while they continue to bleed my account dry... what a headache. Thanks again for everything! 🙂

Just watch out. Debt collection agencies operate on a system where interest and secondary fees are settled first, leaving the principal for last. Often, those fees equal the principal itself. People think they've cleared their debt, only to be blindsided by new claims that are actually just the original balance finally being called in. The debtor remains liable for the principal, the interest, and every single service fee incurred during the process.

@ Richard King3 - it’s not like you just decide to pay those "law firm fees" whenever you feel like it. there's an actual legal order for how things get billed—check the Uniform Commercial Code, maybe.

@ hollowmason64 - look, filing an appeal against a garnishment doesn't stop the clock. an objection does. either way, you're getting the notice through USPS.

Richard King3 said:Just watch out. Debt collection agencies operate on a system where interest and secondary fees are settled first, leaving the principal for last. Often, those fees equal the principal itself. People think they've cleared their debt, only to be blindsided by new claims that are actually just the original balance finally being called in. The debtor remains liable for the principal, the interest, and every single service fee incurred during the process.

No need to worry, I have every single expense itemized and I'm fully aware of what the interest rates look like. We're dealing with a much larger sum here. What they collected initially were just the overdue lease installments plus interest—which has already been paid off. After that, following the terms of our operating lease, they moved to collect the purchase value of the car, minus what we'd already paid, minus its estimated residual value upon return. Everything would have been perfectly fine if the total sum hit zero, meaning we wouldn't owe a dime. However, they decided to also charge us for the "remaining vehicle value at the time of early contract termination." According to the agreement, unless there was total damage or the car wasn't returned, they don't actually have the right to bill the lessee for that. I know this is drifting into a different topic, but anyone who knows their way around a Tesla Financial Services contract (which I've had to learn the hard way lately 😁) will see that something definitely smells fishy here... 🙂

Chloe Murphy3 said:@ Richard King3 - it’s not like you just decide to pay those "law firm fees" whenever you feel like it. there's an actual legal order for how things get billed—check the Uniform Commercial Code, maybe.

@ hollowmason64 - look, filing an appeal against a garnishment doesn't stop the clock. an objection does. either way, you're getting the notice through USPS.

thanks 😁

analogwalker45 said:No need to worry, I have every single expense itemized and I'm fully aware of what the interest rates look like. We're dealing with a much larger sum here. What they collected initially were just the overdue lease installments plus interest—which has already been paid off. After that, following the terms of our operating lease, they moved to collect the purchase value of the car, minus what we'd already paid, minus its estimated residual value upon return. Everything would have been perfectly fine if the total sum hit zero, meaning we wouldn't owe a dime. However, they decided to also charge us for the "remaining vehicle value at the time of early contract termination." According to the agreement, unless there was total damage or the car wasn't returned, they don't actually have the right to bill the lessee for that. I know this is drifting into a different topic, but anyone who knows their way around a Tesla Financial Services contract (which I've had to learn the hard way lately 😁) will see that something definitely smells fishy here... 🙂

let me guess, we're talking about Tesla Financial Services 🤣

hollowmason64 said:thanks 😁

let me guess, we're talking about Tesla Financial Services 🤣

Actually, it's Porsche... 😁

Greetings.

I was hoping if anyone here is knowledgeable regarding legal garnishments or perhaps has some experience (unfortunately) with them, you might find a moment to look over my situation. 🙂 Thanks in advance.

So, back in 2006, a subscription agreement was signed for Verizon. I was a minor at the time; my father set it up under my name without any signature from me. (I only discovered this much later after finally getting a copy of the contract.) About three months in, we went down to their office in person to cancel the service. There was absolutely no mention of anything being unpaid. All the bills were settled, though I haven't kept the receipts all these years. I never received a single warning or notice, and then, suddenly, out of nowhere in 2012, a garnishment arrives!!! 😲
Naturally, they are claiming three UNPAID bills plus early termination fees $500, and once you factor in the interest that has piled up, the total is nearly $1667. I did file an initial dispute, and I actually reached an agreement to pay; I even paid $500, but due to poor financial circumstances, I wasn't able to cover the remaining balance. Now, a court summons has arrived. So, I suppose I am looking for advice: should I show up to court and argue that I was a minor, that I never actually signed anything, and that I never received any prior notices to prepare for payment? 🙂
They claim they sent several notices, but I truly never received anything. I checked with the post office, and nothing was ever sent for me. During those three years following the garnishment, I lived at the same address and received nothing. Then, at my current address where I have lived for four years, I still haven't received a thing. I hope I've covered everything.

It’s a small town where nobody pays their local municipal fees because:

-The streetlights are broken and nobody bothers to change the bulbs.
-Public spaces aren't being cleaned at all.
-Stormwater drainage hasn't been addressed.
-The sewage system was built privately using personal funds (since we're a coastal town, everything just ends up flowing straight into the ocean).
-The specific street I’m most concerned about was paved privately on private land using our own money. A rockslide and soil erosion hit that street, and even though we paid to fix it ourselves, the same landslide is still threatening us today.
-Trash isn't even collected on our street; we have to carry it half a mile just to get it picked up.

Now, most people are facing liens or collections due to non-payment. The issue isn't that people refuse to pay their fair share, but rather that no one wants to contribute when there is zero investment back into our local infrastructure.

I am wondering what can be done from a legal standpoint to compel the local municipality to resolve these issues. If that isn't an option, how might one contest a lien for unpaid debts regarding services that were never actually rendered?