Wage garnishments and collections

John Clark6 said:Oh, come on now—what on earth are you all talking about?
These supposed statements from the IRS... honestly, they don't mean a thing to anyone, and they certainly aren't grounds to halt a foreclosure or a levy. I mean, does an IRS document actually list whether I own a television or a laptop? Of course not! A tax statement isn't some kind of definitive proof—it’s just a partial snapshot at best, and it really doesn't reflect the actual state of someone's assets.

Fair point. To me, it also feels pretty abstract to assume that a clean tax record automatically proves someone doesn't have cash on hand, a house, or a car. They certainly aren't tracking if you own a television or something similar.
On the flip side, how would they even go about seizing a TV or a stove from a household shared by five different people? Where is their proof that the item belongs to that specific individual rather than, say, my grandmother Anne?

There’s actually a specific legal procedure laid out in the law for this—and honestly, we’ve already touched on all of that earlier in this thread... so I don't want us to just end up going in circles...

Frank Hall18 said:So, here's the deal... I'm dealing with a legal judgment because of those AT&T jerks over a bill for $32. I actually paid the bill the exact same day I got the notice, and I even called the collection agency. They told me they see the payment went through, but now they're hitting me with $167 in extra fees just for drafting the seizure request. I've been busy filing an appeal and already went to my first court hearing where I showed them my paperwork from the unemployment office—since I haven't had a job in years—and my tax returns showing I have zero assets. Honestly, I own nothing; I live in my dad's house and rely entirely on his Social Security check. A few days ago, I got another summons for a pre-trial hearing, and I have to bring all those same documents again to back up what I wrote in my appeal. What even is a "pre-trial hearing" anyway? And do I really need a lawyer? Because there's just no way I can afford one right now...

No. Just show up, bring your payment receipt, and explain that you notified them on time about settling the debt. Tell the judge you've been unemployed for years—believe it or not, most of the time they’re actually pretty understanding and will waive whatever they possibly can.🙂

Rebecca White4 said:Look, you don't exactly *need* a lawyer right now, but since they’ve already hired one, get ready to swallow some serious costs. On top of the standard collection fees—we're talking roughly $167—you're going to be on the hook for their attorney fees, which sit at $208, plus those pesky $33 court filing fees for the judgment. It's like being stuck in a traffic jam on the I-95 with no exit in sight. And don't think having zero assets right this second saves you. It just means the bill is waiting for you in the wings. The moment you land a job or get a paycheck, they’ll come knocking to collect everything, interest and all. And honestly? Don't bother counting on the statute of limitations to save your skin...

Who's to say she won't still be out of work for years?
If an enforcement action just sits there for years because they have no way to collect, it'll definitely hit the statute of limitations eventually.

Susan Morgan2 said:Alright, here’s the deal—I’ve got a weird situation on my hands. Some lady shows up at my door waving paperwork, claiming my sister needs to pay some fine or face wage garnishment. The catch? My sister hasn't lived at this address in forever, even though she's still officially registered there on her ID. This woman actually had the nerve to say they’d break into the property with lockpicks and tools to seize assets, even though the place isn't even in my sister's name. Like, how are they even allowed to just barge in and inventory someone else's stuff?
Is it actually possible for something like this to go down? And more importantly, how do you protect yourself so they don't walk off with your things (specifically mine)?

She's totally jerking you around.🙄
What did the paper actually say?

hollowmason64 - 3 out of 3 folks 🙂

Hi there!

I’ve got two different collection notices sitting with the federal authorities, which means my account is currently frozen. I owe one bank roughly $1667 and my mobile provider about $833.
I’m expecting some funds to land soon, which would allow me to clear these debts entirely.
However, I have a few questions regarding the best way to handle this...
Is it more financially sound to just let the system handle everything through the central clearinghouse—essentially letting them deduct the creditors' claims and their own fees from whatever hits my account—or should I try to settle directly with the creditors first to get the freeze lifted? (The catch is that if I go the second route, I’d have to borrow the cash from a colleague since the incoming money is headed to a checking account at a different bank).
If I stick to the first option, what kind of service fees does the government agency charge for processing these collections?
On the other hand, if I borrow the money to pay off the debts in full and the creditors successfully lift the freeze, will I still be on the hook for those agency fees?

Are the total costs associated with the clearinghouse the same in both scenarios? I'm trying to avoid a situation where I end up dealing with a massive headache only to reach the exact same financial result.

Thanks in advance for any insight.

FIFA hits you with those blocking and unblocking fees regardless, so honestly, it doesn't even matter on that front.

Bryan Rivera83 said:FIFA hits you with those blocking and unblocking fees regardless, so honestly, it doesn't even matter on that front.

But does the Fed charge the exact same amount in both of those scenarios I laid out? I mean, scenario one: where I pay off my debts myself so the collectors can finally lift the freeze; or scenario two: where they just grab the money through the bank the moment it lands in my account?

If the fee is identical regardless of how it happens, there’s absolutely no point in me taking out a loan just to settle up before the funds actually clear...

FIFA doesn't give a damn about how you try to cut a deal with the debt collectors; they're coming for their money regardless of whether you're happy about it or not. Just sit tight until your paycheck actually hits your account and then everything gets settled automatically.

I don't think that's quite right—honestly, I suspect the most expensive "fee" actually happens when an account gets frozen. In those cases, I believe they charge something close to $60 just to try the transaction again... I'm not entirely certain, though! It feels different to me, because you aren't really paying to settle the original balance, you're just paying for the privilege of unfreezing the account itself.

John Clark6 said:I don't think that's quite right—honestly, I suspect the most expensive "fee" actually happens when an account gets frozen. In those cases, I believe they charge something close to $60 just to try the transaction again... I'm not entirely certain, though! It feels different to me, because you aren't really paying to settle the original balance, you're just paying for the privilege of unfreezing the account itself.

So, if I’m following correctly, the smartest move is just to let the cash sit there and let both the collection agencies and FIFA take their cut from the balance?

I gave them another call today, and I have to admit, the folks on the free info line were actually quite polite, even if I'm not entirely convinced we were even speaking the same language...
They’re claiming that FIFA gets its fees regardless—that it makes no difference whether I pay my debts directly or if the claims are processed through them. That doesn't sound particularly logical to me, especially since their online fee schedule is an absolute labyrinth of nonsense until you've actually been charged.
To make matters even more confusing, my bank told me that if I settle up with them directly, FIFA won't take a commission.
🙂

I was planning to file an attachment against my employer's assets because they haven't paid me my wages, but it turns out the company is currently in pre-bankruptcy proceedings. Does anyone know if it's even possible to freeze their accounts or seize funds at this stage to finally get the four months of back pay I'm owed?

Thanks

It’s actually impossible—until that pre-bankruptcy settlement is officially finalized before the bankruptcy court, you still have to report all wages or any other outstanding debts as part of the pre-bankruptcy filing...

John Clark6 said:It’s actually impossible—until that pre-bankruptcy settlement is officially finalized before the bankruptcy court, you still have to report all wages or any other outstanding debts as part of the pre-bankruptcy filing...

So, what's my move here? Any advice? My employer definitely didn't include my unpaid wages in their pre-bankruptcy filing... Is there really no way at all to recover what I'm owed?

John Clark6 said:hollowmason64 - 3 out of 3 folks 🙂

What's your issue here, man? 😁

1.) What Cash is trying to squeeze out of her $167 is just part of their job description, but that doesn't mean she actually owes them those extra fees. She can just show up to court, explain she's been unemployed for years, and clarify that the debt of $32 only happened because she had zero income. From what I've seen in my own experience, courts almost always toss those extra costs out in cases like this.

2.) Yeah, she isn't required to start working for another 10 years before the whole thing hits the statute of limitations. And since she’s saying she has absolutely nothing in her own name, they don't have any assets to seize to buy more time.

3.) And yeah, the woman is being difficult—she can come by and try to inventory whatever she wants, but if none of it belongs to her sister, there won't be anything to grab when it comes to personal property...

...which part of that is actually wrong?

steelnomad65 said:So, what's my move here? Any advice? My employer definitely didn't include my unpaid wages in their pre-bankruptcy filing... Is there really no way at all to recover what I'm owed?

If I remember correctly, your claims—meaning all debts owed up until the bankruptcy filing—get wiped out if they aren't officially filed; basically, you lose the legal right to collect them. And honestly, you probably should have filed those claims yourself, even though the employer was supposed to list them too. I'm not entirely sure which stage of the bankruptcy process they're in right now, but maybe try filing an appeal? I think there might be some kind of priority status for unpaid wages (I'm not positive, though!), so it's worth looking into. You can check the court's website—just type in the company's name—to see exactly where things stand in the proceedings.

hollowmason64 said:What's your issue here, man? 😁

1.) What Cash is trying to squeeze out of her $167 is just part of their job description, but that doesn't mean she actually owes them those extra fees. She can just show up to court, explain she's been unemployed for years, and clarify that the debt of $32 only happened because she had zero income. From what I've seen in my own experience, courts almost always toss those extra costs out in cases like this.

2.) Yeah, she isn't required to start working for another 10 years before the whole thing hits the statute of limitations. And since she’s saying she has absolutely nothing in her own name, they don't have any assets to seize to buy more time.

3.) And yeah, the woman is being difficult—she can come by and try to inventory whatever she wants, but if none of it belongs to her sister, there won't be anything to grab when it comes to personal property...

...which part of that is actually wrong?

1. What "extra costs" are we talking about here? The notice fee? Which is illegal anyway? There is no way a judge is going to strike down the legal fees.
2. I think it’s been explained sixteen times already that the statute of limitations isn't a flat 10-year rule, and you don't necessarily need to seize specific assets to interrupt that period—there are plenty of other legal actions that can reset the clock.
3. She isn't being rude; she’s just describing the likely sequence of events if they actually come to seize her property. Maybe she’s being a little dramatic, but honestly, it’s all very realistic under certain circumstances.

Come on then, step up and try me. 😍

Susan Morgan2 said:Alright, here’s the deal—I’ve got a weird situation on my hands. Some lady shows up at my door waving paperwork, claiming my sister needs to pay some fine or face wage garnishment. The catch? My sister hasn't lived at this address in forever, even though she's still officially registered there on her ID. This woman actually had the nerve to say they’d break into the property with lockpicks and tools to seize assets, even though the place isn't even in my sister's name. Like, how are they even allowed to just barge in and inventory someone else's stuff?
Is it actually possible for something like this to go down? And more importantly, how do you protect yourself so they don't walk off with your things (specifically mine)?

And just like that, she's risking another fine for not updating her residency/address with the DMV. But hey, she can probably change her legal residence and grab a new driver's license in a heartbeat if she wanted to. She claimed she wouldn't "break in" because she'll just use a key, but whatever. Under certain state laws regarding civil enforcement, there are specific protections on what can't be seized.
Usually, the locksmith and the sheriff show up for the actual seizure, but I'm not entirely sure if they come out just to do an inventory check.
http://www.law.gov/enforcement-code

John Clark6 said:If I remember correctly, your claims—meaning all debts owed up until the bankruptcy filing—get wiped out if they aren't officially filed; basically, you lose the legal right to collect them. And honestly, you probably should have filed those claims yourself, even though the employer was supposed to list them too. I'm not entirely sure which stage of the bankruptcy process they're in right now, but maybe try filing an appeal? I think there might be some kind of priority status for unpaid wages (I'm not positive, though!), so it's worth looking into. You can check the court's website—just type in the company's name—to see exactly where things stand in the proceedings.

So, here’s the deal... I quit my job at the beginning of July this year. My employer didn't officially process my termination until July 31st, and that only happened after I sent him a formal resignation notice because he hadn't been paying me. Since he owed me for four months of pay (not counting my July salary), I reported him to the Department of Labor on August 8th for withholding paychecks and failing to provide pay stubs. The inspectors did a site visit on September 17th, confirmed everything was messed up, and I got the official notice along with my pay stubs on September 27th. The notice basically says that for monetary claims, I have to go through the court system and that claims expire after three years. I called the Department of Labor, and they mentioned that besides suing, I could potentially attempt a garnishment through Chase Bank using those pay stubs. I went down to the bank, and they told me to fill out a request and bring in tax documents and the pay stubs, but the tellers weren't sure if it would actually work since the employer is currently going through pre-bankruptcy proceedings, and they don't handle those specific details. I checked the bank's online portal, and it shows a hearing scheduled for October 11th at 10:00 AM, with a vote happening later that day at 11:00 AM. Does it make sense to keep pushing for this?

P.S. And does that hearing actually mean anything for me?

steelnomad65 said:So, here’s the deal... I quit my job at the beginning of July this year. My employer didn't officially process my termination until July 31st, and that only happened after I sent him a formal resignation notice because he hadn't been paying me. Since he owed me for four months of pay (not counting my July salary), I reported him to the Department of Labor on August 8th for withholding paychecks and failing to provide pay stubs. The inspectors did a site visit on September 17th, confirmed everything was messed up, and I got the official notice along with my pay stubs on September 27th. The notice basically says that for monetary claims, I have to go through the court system and that claims expire after three years. I called the Department of Labor, and they mentioned that besides suing, I could potentially attempt a garnishment through Chase Bank using those pay stubs. I went down to the bank, and they told me to fill out a request and bring in tax documents and the pay stubs, but the tellers weren't sure if it would actually work since the employer is currently going through pre-bankruptcy proceedings, and they don't handle those specific details. I checked the bank's online portal, and it shows a hearing scheduled for October 11th at 10:00 AM, with a vote happening later that day at 11:00 AM. Does it make sense to keep pushing for this?

P.S. And does that hearing actually mean anything for me?

I guess I can't really explain the whole Chapter 11 bankruptcy process to you right here, but what matters most for you is whether the public notice inviting creditors to file their claims has already passed—that window usually lasts about a month. Once that period closes, no more claims can be filed, and you won't be able to pursue collecting your wages later on; I mean, you could try, but any legal challenge to your attempt to collect will likely be upheld. And if a creditor meeting is already scheduled that soon, it probably means the deadline for filing claims has already lapsed.

John Clark6 said:I guess I can't really explain the whole Chapter 11 bankruptcy process to you right here, but what matters most for you is whether the public notice inviting creditors to file their claims has already passed—that window usually lasts about a month. Once that period closes, no more claims can be filed, and you won't be able to pursue collecting your wages later on; I mean, you could try, but any legal challenge to your attempt to collect will likely be upheld. And if a creditor meeting is already scheduled that soon, it probably means the deadline for filing claims has already lapsed.

Okay, I get it... so there's basically no way for me to "force" my employer to pay out those wages? Not even through labor court or anything?
Thanks for the help

P.S. Regarding that one-month period—does that mean 30 business days, or just calendar days from date to date? For example, if it was posted on August 30th, does it run until September 30th, or am I counting 30 business days starting from August 30th?