Wage garnishments and collections

Look, if your buddy actually settles a debt based on some legal settlement they received, then they absolutely—and I mean, listen to me, ABSOLUTELY— have to send proof of payment to both the notary handling the case for the creditor and the creditor themselves (which, in this scenario, would be Verizon). If they do that, they won't have to deal with another garnishment hitting their account.
They should send that confirmation via certified mail with a return receipt, drop it off in person, or just shoot over an email—whatever works. But most importantly? They need to follow up to make sure it was actually received.

The problem is, tons of people pay the bill but forget to send that confirmation to the notary managing the file. Of course, the notary has no clue the debt is cleared, so they just go ahead and trigger the collection process through Fidelity. That’s why you have to send that proof of payment.

And for heaven's sake, just cancel the contract if they aren't even using the service anymore.

Darcy ... thanks a million from my buddy. You were a huge help, just like our pal Opaki.

So now that we’re all part of this massive international union... let's say Person 1 owes me money and there's already an official judgment against them. They've basically vanished to Europe—let's say they moved to Germany to work or whatever—and they've probably opened a local bank account to get their paycheck direct deposited. I guess the big question is: is there some kind of overarching international law or treaty that actually lets me go after their wages or freeze those accounts in another country?

It just isn't possible

so, does anyone actually know how many months I can let these bills slide before I start getting hit with an enforcement order and all those crazy court fees? i'm talking about a Verizon bill here...

Hey there. I've got a question about pensions and garnishments.
So my dad has been retired since August 2013, but he still hasn't seen a single dime from his pension. Meanwhile, he just got hit with a massive garnishment of about $2333. His monthly pension should be around $500. He already set up a protected account. Basically, if he gets three months of pension payouts all at once (like $4,500), does Fidelity only take a third of it? Thanks

Lawrence Reyes2 said:Thanks so much!!
Since there’s no real way to fight it now, things are actually looking up. I’m stuck between paying the bill outright or just letting them freeze my checking account and take it from there. I really don't want to end up in that nightmare scenario where you pay everything off, but they freeze your account anyway and pull the money a second time! That happened to two of my coworkers—they eventually got their money back, but man, it was such a huge headache...

There’s no basis for an appeal like what Opaki suggested. Look at selling a house. Once you close on a property, what’s the first thing you do? You take that contract straight to the branches of Berkshire Hathaway, Exelon, or Verizon to terminate your services and settle any outstanding balances up to the closing date. If you want to transfer your debt to the new owner, both parties have to be physically present to handle all the necessary paperwork.
He’s got grounds for an appeal. Details coming up.

ruggedmaker2 said:Look, if your buddy actually settles a debt based on some legal settlement they received, then they absolutely—and I mean, listen to me, ABSOLUTELY— have to send proof of payment to both the notary handling the case for the creditor and the creditor themselves (which, in this scenario, would be Verizon). If they do that, they won't have to deal with another garnishment hitting their account.
They should send that confirmation via certified mail with a return receipt, drop it off in person, or just shoot over an email—whatever works. But most importantly? They need to follow up to make sure it was actually received.

The problem is, tons of people pay the bill but forget to send that confirmation to the notary managing the file. Of course, the notary has no clue the debt is cleared, so they just go ahead and trigger the collection process through Fidelity. That’s why you have to send that proof of payment.

And for heaven's sake, just cancel the contract if they aren't even using the service anymore.

It’s obvious that the debtor has an obligation to notify the creditor once the debt is settled. Besides, any creditor can easily see that on their own payment statements.
What's the point of notifying the law firm that drafted the proposal or the notary who issued the ruling?

A notary will only trigger an enforcement through FIFA if the creditor specifically requests collection—at least that’s my understanding. Otherwise, the creditor hands it over directly to the relevant agency in charge of enforcement (though someone more experienced might know better). I believe the validity period for such a final decision is 10 years, which is likely how long the archival records are kept. The creditor gets to decide exactly when within those 10 years they want to put that decision into effect.
Once that garnishment hits, there’s no statute of limitations until it's actually settled.
Handing a receipt to the clerk won't mean a damn thing, just like showing proof of payment to FIFA doesn't settle the debt. Both will politely tell you—without getting all sentimental about it—to take it up with the creditor. They’re just processors. Only the creditor, or a judge if things escalate, actually has the power to stop the collection process.
People just don't get it—that’s why they pull these ridiculous stunts at FIFA or the notary office. They end up embarrassing themselves more than anyone else because they actually think they've mastered everything taught at Harvard Law. And don't even get me started on how they talk to the staff at those institutions.
Every citizen has an absolute DUTY to file an objection against an enforcement order. How a debtor plans to settle their debt once that order is overturned is entirely on them.
I always suggest sitting down with the creditor to work out a repayment plan if they're willing to negotiate—and usually, they are.
If a debtor wants to gamble on trying to let the statute of limitations run out, go ahead, but don't come crying about it on these forums later.
Otherwise, I hope it’s clear now that the enforcement laws are completely discriminatory against the debtor.

Karen Williams6 said:Hey there. I've got a question about pensions and garnishments.
So my dad has been retired since August 2013, but he still hasn't seen a single dime from his pension. Meanwhile, he just got hit with a massive garnishment of about $2333. His monthly pension should be around $500. He already set up a protected account. Basically, if he gets three months of pension payouts all at once (like $4,500), does Fidelity only take a third of it? Thanks

You can get all your questions answered at the same bank branch where you set up the protected account—provided you’re actually polite to them.
Ask the clerk where else you need to go, whether you need to visit the Social Security Administration, and what the legal minimum is for non-seizable income.
Yes, FIFA takes one-third unless the agreement with the collector states otherwise.

urbangardener said:so, does anyone actually know how many months I can let these bills slide before I start getting hit with an enforcement order and all those crazy court fees? i'm talking about a Verizon bill here...

Who knows... they'll eventually file it, but when you actually get served depends on how fast they work with the local sheriff.

I’m honestly not sure who to turn to here, so I’m hoping someone might have some advice or a way forward.
So, things are a bit rough right now. I’m currently unemployed through no fault of my own, and I’ve just found out I’m pregnant. On top of that, I’ve already got a judgment against my bank account, so my funds are basically frozen, leaving me with absolutely nothing to work with.
Now, I just received a final notice regarding a second credit line. They’re giving me an eight-day window to settle the debt, or they’re threatening to take me to court.
I don't even want to talk about how much this is weighing on me, but the truth is, there is simply no money to give them. Is there any kind of formal letter or some specific way to reach out to them to explain the situation? I really want to avoid things spiraling even further out of control.
I would pay every cent if I could just get some peace of mind, but right now, I’m just stuck.

I suspect there was, but who has the patience to dig through hundreds of pages.

Can someone please tell me when the statute of limitations kicks in for a garnishment?

The debt is established, the collection is initiated, court proceedings, the actual garnishment... then absolute expiration.

thx

If a foreclosure or seizure process has actually been triggered—and we’re talking about someone who truly knows their way around the legal system—then it is NEVER happening!!
I really think Bill Gates should make it a point to emphasize exactly which debt we're dealing with here.

Daniel Martinez9 said:There’s no basis for an appeal like what Opaki suggested. Look at selling a house. Once you close on a property, what’s the first thing you do? You take that contract straight to the branches of Berkshire Hathaway, Exelon, or Verizon to terminate your services and settle any outstanding balances up to the closing date. If you want to transfer your debt to the new owner, both parties have to be physically present to handle all the necessary paperwork.
He’s got grounds for an appeal. Details coming up.

It’s obvious that the debtor has an obligation to notify the creditor once the debt is settled. Besides, any creditor can easily see that on their own payment statements.
What's the point of notifying the law firm that drafted the proposal or the notary who issued the ruling?

A notary will only trigger an enforcement through FIFA if the creditor specifically requests collection—at least that’s my understanding. Otherwise, the creditor hands it over directly to the relevant agency in charge of enforcement (though someone more experienced might know better). I believe the validity period for such a final decision is 10 years, which is likely how long the archival records are kept. The creditor gets to decide exactly when within those 10 years they want to put that decision into effect.
Once that garnishment hits, there’s no statute of limitations until it's actually settled.
Handing a receipt to the clerk won't mean a damn thing, just like showing proof of payment to FIFA doesn't settle the debt. Both will politely tell you—without getting all sentimental about it—to take it up with the creditor. They’re just processors. Only the creditor, or a judge if things escalate, actually has the power to stop the collection process.
People just don't get it—that’s why they pull these ridiculous stunts at FIFA or the notary office. They end up embarrassing themselves more than anyone else because they actually think they've mastered everything taught at Harvard Law. And don't even get me started on how they talk to the staff at those institutions.
Every citizen has an absolute DUTY to file an objection against an enforcement order. How a debtor plans to settle their debt once that order is overturned is entirely on them.
I always suggest sitting down with the creditor to work out a repayment plan if they're willing to negotiate—and usually, they are.
If a debtor wants to gamble on trying to let the statute of limitations run out, go ahead, but don't come crying about it on these forums later.
Otherwise, I hope it’s clear now that the enforcement laws are completely discriminatory against the debtor.

Some people just don't get that you actually *have* to let the creditor know the debt is settled. They don't even bother reading the fine print on the notices they receive....
Sadly, that's just how it goes.
From what I've seen in the real world, once you pay up, you need to notify every living soul and inanimate object 😁 that the money moved. Most creditors won't even bother telling the collections department that, say, you paid yesterday, so the whole machine keeps grinding away at your bank account through some agency like the Treasury.

Sure, the creditor sees the money hit their account, but the real question is who actually looks at it and which department tells whom. In these massive corporations, departments act like they live on different planets. Accounting sees the payment and logs it, but they never bother telling the legal team that started all the warnings and garnishments. So then you end up getting sued for something you already paid... yeah, happens all the time. It's a mess.

Then you've got courts "losing" proof of payment—even when you have the signed receipts proving they received them. And don't even get me started on how easy it is for someone else to overlook or forget a crucial detail.
Just to be safe, you should notify everyone and everything 😁 and hoard those documents like they're gold for a million years.

ruggedmaker2 said:Some people just don't get that you actually *have* to let the creditor know the debt is settled. They don't even bother reading the fine print on the notices they receive....
Sadly, that's just how it goes.
From what I've seen in the real world, once you pay up, you need to notify every living soul and inanimate object 😁 that the money moved. Most creditors won't even bother telling the collections department that, say, you paid yesterday, so the whole machine keeps grinding away at your bank account through some agency like the Treasury.

Sure, the creditor sees the money hit their account, but the real question is who actually looks at it and which department tells whom. In these massive corporations, departments act like they live on different planets. Accounting sees the payment and logs it, but they never bother telling the legal team that started all the warnings and garnishments. So then you end up getting sued for something you already paid... yeah, happens all the time. It's a mess.

Then you've got courts "losing" proof of payment—even when you have the signed receipts proving they received them. And don't even get me started on how easy it is for someone else to overlook or forget a crucial detail.
Just to be safe, you should notify everyone and everything 😁 and hoard those documents like they're gold for a million years.

That’s why people keep copies of receipts for at least 10 years... on December 31, 2013, I’m tossing everything paid before January 1, 2003—so I’m holding onto 11 years of valid receipts... it's a massive pile. Nowadays, since I use online banking, I always pull an e-statement and attach it to my records... so now it's an even bigger pile... maybe I'll get hit with a garnishment eventually.
Technically, there's no need to notify anyone except the creditor, provided you file a formal dispute.
Otherwise, LegalZoom is one of those sites where you can roughly draft a dispute for free, though you have to register and provide your Social Security number.

Anyway, that's not the point. There's a more important thing I want to cover. I didn't want to bring it up before, but since the media is already running a shallow version of this story, there's no sense in keeping it to myself.

Basically, I mentioned a while ago that people can actually rid themselves of collections quite easily, but I hesitated because the methods involved could be considered a serious abuse of the legal system.

This is about fighting collections that are in the thousands of dollars (we aren't counting small change here).
First off, this whole approach requires someone you trust implicitly. Without that, nothing works. Second, this won't work if a collection action has already been officially filed.

Let's get to it. You get a notice for an amount >$16667 and you know you'll never be able to pay it. What do you do? Filing a formal dispute is the first step to neutralizing the collection. That buys you at least a year or a year and a half. Second, you open a protected bank account at a local FIFA branch. Third, you sort out ownership of your belongings and property. If you have minor children, it's best to transfer assets to them—provided they aren't addicts... 😉 Basically, transfer all real estate and assets to someone you trust. If you're married, a divorce becomes inevitable and necessary. If you have kids, you'll naturally agree to set child support at the maximum allowable rate. The goal is to reach a state where you practically own nothing—not even the clothes on your back—so any creditor trying to collect finds absolutely nothing to grab.
And here’s the most important part:
The moment you file an objection, you sign a loan agreement with a default clause involving someone you trust—let's say $100000 (believe me, there are plenty of people out there, and you can set this up right at the same notary where you filed your objection... they won't mind the extra income) with an 8-day repayment window and an 8.99% annual interest rate, just to be aggressive. 😉
Once those 8 days pass, your trusted person files a judgment against you for $100000 against your cash assets using a valid legal instrument 😉. Naturally, when that judgment hits your mailbox, you simply file an objection to it as well. It becomes legally binding, and you can head straight to the bank to freeze your own account.
After that, any other collections hitting you will just sit behind yours. Since your debt is practically uncollectible thanks to our "fair and just" laws, none of those subsequent collectors will be able to touch anything.

But... if you want to be truly ruthless, don't send the judgment for collection immediately...

People on forums have mentioned assumption of debt agreements... you could simply sign a contract taking responsibility for all debts owed by other individuals, provided you don't cause them harm (be careful with this one and do your homework, because for example, if you assume responsibility for utility bills, companies like ConEd might shut off the power after three missed payments)

Actually, you don't even need to research that. Just take out a personal loan for the maximum amount possible (roughly $67), withdraw the cash, and hide it under a mattress or give it to your trusted person to put in a high-yield savings account...
Only then do you trigger the judgment... as for the bank... whatever, let them try to collect. 🙂

The fallout: You'll never be able to use credit cards again... and of course, if this trusted person is your life partner (which is usually the case), you'll have to treat them like royalty for the rest of your life... because everything you own now belongs to them, while they spend a third of your income pampering you... 😉

The catch? The abuse of rights lies in the fact that you signed a sham loan agreement with no actual money changing hands... so yes, expect some lawsuits. But the prosecutor would have to prove the contract was fake, which is incredibly difficult to prove.

🙄 I honestly don't even know where to begin—so, I think I'll just skip the intro entirely... though I have to say, I always find reading your posts so incredibly engaging 🙂

Someone suggested I try asking here, so this is my situation—I’m looking for any advice on how I might actually get paid what I'm owed.

So...
I worked for a private company for six months, and they failed to pay me for five of them.
(Please don't lecture me on why I let it go on this long; things were just difficult, and if you've never been caught in a cycle like that, it's hard to explain.)
In the end, I was fired the moment I finally found the nerve to ask my boss when we could expect our back pay.
He was incredibly rude, and things actually got aggressive enough that he almost laid hands on me, simply because I had the audacity to ask for money I had already earned. 🙄
The termination paperwork falsely claimed my contract had simply expired, which obviously wasn't the case.
I never received a single pay stub during my employment, though I did eventually manage to secure them after a union pushed the company to comply.
I took those stubs to a legal aid attorney, who told me she would file a claim in court to recover my unpaid wages plus interest.
It’s been a year and a half since then, and I haven't seen any progress.
I still haven't touched a cent of that money, even though it's a significant amount.
My lawyer keeps telling me to be patient, but there's still nothing—no calls, no updates, nothing.
To make matters worse, the company has since filed for bankruptcy.
Does this mean I'll truly never see my hard-earned money?
Is there really no way to hold these kinds of shady private operators accountable?
It feels wrong that someone can exploit hundreds of employees like slaves for months, refuse to pay them once the work is done, and then just declare bankruptcy to walk away from everything.
Anyway, my question is: is there any path left to getting this money, or is my case—along with the hundreds of others at that firm—effectively dead now that they've declared bankruptcy?

On a side note, someone mentioned something about collecting from the bankruptcy estate, so if anyone could briefly explain what that entails and how the process works, I'd appreciate it. 🤷

Basically, what this boils down to is that you really have to file your claims against the bankruptcy estate right ON TIME—that’s truly the only thing that matters here, I guess.

Thanks for such a thorough breakdown. 🙄

Betty Fisher said:Thanks for such a thorough breakdown. 🙄

If you want a truly detailed answer, I need one more thing:
were those certified pay stubs? You know, the ones with an official stamp and a signature from the manager?

Once I have that, you'll get your thorough response...

Daniel Martinez9 said:If you want a truly detailed answer, I need one more thing:
were those certified pay stubs? You know, the ones with an official stamp and a signature from the manager?

Once I have that, you'll get your thorough response...

Yes, they are. Every single one was stamped with the corporate seal and signed off by the authorized manager.