Wage garnishments and collections

rustymaker5 said:I have a bit of a situation here and I’m hoping someone might be able to shed some light on it... My late husband was the owner and the sole employee of his own small business, which was run right out of our home. After we went through the probate process, I didn't actually transfer any of the company shares into my name, so on paper, the business is still officially under my husband's name—even though it isn't actually operating anymore. Someone at the Commercial Court told me that since there are no outstanding debts, I should just wait for the company to be dissolved by operation of law after three years... but now, out of nowhere, I've received a notice regarding a garnishment order. This is for something related to a lawsuit the company lost about nine months after my husband passed away. So, my big question is, can they actually come after me personally as an individual? I mean, technically I haven't officially taken over the firm, so am I liable just because I inherited the estate?
Thanks in advance.

If you didn't officially take over the inheritance, then they shouldn't be able to touch you for those debts.🙂

Hopefully... I'm heading in next week to finally deal with all this mess, so we'll see how it plays out, thanks.

rustymaker5 said:Hopefully... I'm heading in next week to finally deal with all this mess, so we'll see how it plays out, thanks.

Honestly, just scan the death certificate and send it over. Just let them know the gentleman passed away and leave it at that. Nothing else needed.

rowdyraven112 said: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.

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.

Back in September 2013, my supplemental insurance contract through Medicare actually expired.
I actually sent them a formal written request to stop renewing it—honestly, I’ve always had issues with that whole automatic renewal thing anyway. They didn't end up renewing it, but they still sent me a notice saying I owe something... $153 Debt.
After calling them almost every single day for nearly a month, I finally got a call back from someone at the local branch. She told me that I apparently have an outstanding debt of... $102 So, I realized I hadn't actually paid my bill from July 2013. I went ahead and double-checked everything, and yeah, it turns out I really did miss that one. So, I just went ahead and paid it. $43.

So, a few days later, I get hit with another notice, and this time the amount they’re asking for is even higher. Since nobody had bothered to reach out to me at all, I decided to just head down to the local enforcement office myself. They told me straight up that this is all regarding my notice period and that I have to settle the bill. I tried my best to explain the situation to them—I mean, I really tried—but I kept telling them that I didn't actually resign. My contract just reached its end date, and when it expired, I simply didn't want to renew it. I guess they weren't really having it, though.

After a little while—around January 2014—I finally got hit with an enforcement order for that amount, though it had already been reduced by... $43 I can't quite remember the exact amount I paid back in November 2013, but this time they actually included a supplemental insurance card with everything. That card shows a start date of June 27, 2011, and it begins with... $1.00 Interest and debt accrual as of June 27, 2011. $43.

So, I finally filed an appeal against that seizure order. It actually worked—I just got the court's decision back, and they’re setting aside the seizure entirely. They’ve also ordered that all the actions taken during the process be overturned. As for point number two, it looks like the whole thing is just going to reset, basically picking up right where we left off regarding the objection to the payment order. I guess things are moving in the right direction, maybe.

So, a few days ago, I got a call about a preliminary hearing for a lawsuit. Turns out, Medicare is the one suing me.

So, I’ve been thinking about this, and I guess I should probably just ask...
I honestly don't get how Medicare can carry a debt like that for years without ever sending out a single warning notice. I've been paying my bills on time this whole time, yet interest just keeps piling up on that amount. It feels pretty shady, I guess. Maybe there's some bureaucratic loophole I'm missing, but it doesn't make much sense to me.
I paid one installment for my wife, so technically it looks like I still owe two, but they haven't actually refunded her subscription to our account yet...

It turns out I actually owe them two installments, which have now ballooned once you add in all the interest dating all the way back to 2011. $107

So, what should I do now?

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

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.

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.

rowdyraven112 said: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.

Thanks for the advice.

Later...

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

Honestly, you might want to start chipping away at what you owe by paying off those older bills directly to AT&T first. That way, once an enforcement office sends over a seizure notice, you can file a formal objection showing you've already made progress on settling the debt—and who knows, maybe you'll have the whole thing cleared by then.

How am I supposed to have the IRS perform a seizure against a company if they’re currently in pre-bankruptcy proceedings—especially now that a different court has tossed that whole pre-bankruptcy process out? It’s a construction firm.

Aaron Lee15 said:How am I supposed to have the IRS perform a seizure against a company if they’re currently in pre-bankruptcy proceedings—especially now that a different court has tossed that whole pre-bankruptcy process out? It’s a construction firm.

Not gonna happen.
The whole point of the pre-trial phase is that you don't have to deal with any frozen accounts or sudden seizures during that window. You basically just get to stand in line with everyone else who's owed money and wait your turn.

Well, I suppose if they've managed to void that second tier—or maybe they're heading into bankruptcy or finally exiting a pre-bankruptcy settlement—then those accounts might just get unblocked again... I'm honestly not entirely sure what the exact situation was?

If the court actually tossed the ruling, then we’re looking at nothing but bankruptcy proceedings and frozen assets. There really isn't any other way out—unless, of course, they managed to get an extension on the deadline 😁

Maybe they tossed it out because there wasn't even a legal basis to start the pre-bankruptcy proceedings—like, if the company is actually liquid and solvent, and all they were trying to do was get someone to write off a debt??!! 🙂

Here’s the situation.
State Farm is coming after me for an old debt. I had credit insurance through them back when I had an auto loan.
The bank settled everything by seizing and selling the car. As far as I was concerned, the whole chapter was closed somewhere back in 2004 or 2005. Or so I thought...

The reality is the car was sold for about a third of its actual market value, and they covered the remaining balance by triggering that credit insurance—something I was never even notified about.

So, because of that tiny gap they filled with insurance, plus all sorts of extra fees, a debt that started at a few thousand dollars has ballooned to nearly $15k. Now, CroSig is demanding that money from me. I tried to contact them directly, but they just redirected me to some legal vulture acting as a notary.

There is a legally binding judgment from 2010. Personally, I never received it or even saw it until a few days ago, so I never had the chance to appeal.

Based on that enforcement order, my former employer was ordered back in 2012 to garnish my wages. Since I hadn't worked for them for months by then, they just sent a letter stating I was no longer on their payroll. They let me know I had some kind of garnishment hitting, but I just assumed it was some clerical error or a total joke.

My current employer just received the exact same court order, including all the outdated info from my previous job. They didn't even bother to update the document. From what I can see in the scanned PDF, the whole thing is riddled with wrong addresses, incorrect dates, and other nonsense.
My boss told me they have to follow the order, which means I'm looking at a paycheck that's $2,000 short every single month until I can somehow get a stay of execution on this garnishment.

Right now, my options look like this:
Faking a pay cut so there's nothing left for them to seize.
Quitting and switching to freelance/contract work.
Quitting and working under the table.
Faking a divorce and paying "alimony" to an ex-wife.
A complete mess and a shaky seat.

Is there any other way out of this nightmare?

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.

Which specific documents qualify as enforceable instruments that can be submitted in person to the IRS to initiate a seizure?

When I visited the IRS office, they informed me that this process typically requires a notary public, an attorney, or an official seizure order sent directly by the enforcement office. However, I recall reading somewhere that if you present certain items—like a court order or a verified pay stub—the IRS might be able to proceed with the seizure on the spot... I seem to have forgotten the rest of those details.

I appreciate any guidance you can provide.

Peter Peterson71 said:Here’s the situation.
State Farm is coming after me for an old debt. I had credit insurance through them back when I had an auto loan.
The bank settled everything by seizing and selling the car. As far as I was concerned, the whole chapter was closed somewhere back in 2004 or 2005. Or so I thought...

The reality is the car was sold for about a third of its actual market value, and they covered the remaining balance by triggering that credit insurance—something I was never even notified about.

So, because of that tiny gap they filled with insurance, plus all sorts of extra fees, a debt that started at a few thousand dollars has ballooned to nearly $15k. Now, CroSig is demanding that money from me. I tried to contact them directly, but they just redirected me to some legal vulture acting as a notary.

There is a legally binding judgment from 2010. Personally, I never received it or even saw it until a few days ago, so I never had the chance to appeal.

Based on that enforcement order, my former employer was ordered back in 2012 to garnish my wages. Since I hadn't worked for them for months by then, they just sent a letter stating I was no longer on their payroll. They let me know I had some kind of garnishment hitting, but I just assumed it was some clerical error or a total joke.

My current employer just received the exact same court order, including all the outdated info from my previous job. They didn't even bother to update the document. From what I can see in the scanned PDF, the whole thing is riddled with wrong addresses, incorrect dates, and other nonsense.
My boss told me they have to follow the order, which means I'm looking at a paycheck that's $2,000 short every single month until I can somehow get a stay of execution on this garnishment.

Right now, my options look like this:
Faking a pay cut so there's nothing left for them to seize.
Quitting and switching to freelance/contract work.
Quitting and working under the table.
Faking a divorce and paying "alimony" to an ex-wife.
A complete mess and a shaky seat.

Is there any other way out of this nightmare?

My advice would be to head down to the courthouse and request a full copy of the case file. You really need to scrutinize the timeline. Try to focus specifically on the gap between when the enforcement office collected your debt and when they actually triggered the seizure process—there's a chance the statute of limitations might have already kicked in during that window.

The idea of dealing with wage garnishment through some kind of "under the table" arrangement or off-the-books work only works if you don't have anything in your own name. If you do have assets, they can just slap a lien on them.
There are ways to dodge certain things, but you have to be incredibly careful; you don't want to end up digging yourself into an even deeper hole.

I was wondering if having an outstanding debt of about 70 bucks with AT&T $0.00...might affect my ability to get some
new lines in the city where you live?