Wage garnishments and collections

Ryan Lopez85 said:Hey everyone... So, just like a bunch of other people out there, my checking account is totally frozen because of an ongoing garnishment, and I get my paycheck through a payroll card. On top of all that, I just joined an Avon campaign and they actually bumped me up to a leader position, which means I'm supposed to be getting $167 deposited into my account every month. But get this—they told me the FIN is going to snatch every single cent because apparently, since it isn't technically "wages," it’s fair game. Blah blah blah! I tried being smart and opened a separate checking account at the same place, Hypo, thinking I could shield some cash, but they basically told me they'll grab everything from there too. Like, seriously? I can't even save a third of my deposits?! Does anyone actually know how this works, and do they even have the legal right to pull this kind of crap? If they do, is there any way I can open an account at a completely different bank to dodge the seizure, or will Hypo just intercept it since all the banks are linked up now?? Thanks in advance!😉🙂

They're going to take it all. See, what Avon pays you isn't technically a salary or a pension; it's just "other income," and that stuff isn't protected by law.
If you look at the FINA website, they list exactly what counts as protected income (for example, they protect 2/3 of your wages or pension, and child benefits or disability payments are fully protected). Aside from those specific things, there might be a few other exceptions under special regulations, but "side hustle" money isn't one of them. Bottom line: your Avon money is fair game for the collectors.

Look on the bright side: you'll be paying off that debt faster this way. Isn't that actually what you want? Paying it off sooner so you aren't stuck drowning in interest for years?

An enforcement action through FINA hits every single cent you have. That means no matter which bank you run to, if you open an account, it's going to be frozen. There's no hiding.
Honestly, you could have avoided this whole mess much more easily if you had just sat down and worked out a payment plan with whoever you owe. Since you didn't reach a deal and didn't pay the debt, you ended up here. Once the debt is cleared, they'll unfreeze everything.
As simple as that!

Hey everyone,

I’ve got a question and could really use some perspective here. I’m currently dealing with three different collection agencies regarding cash assets, with the total debt sitting at about 8 $0.00; it originally started out at 15,000, but I’ve managed to chip away at it a little over time. I was wondering if there’s any actual chance of petitioning these collectors to lift the freezes on my bank accounts if I propose a direct payment plan—basically, paying them off in monthly installments directly rather than going through a central clearinghouse like Goldman Sachs. My goal is to get my accounts unblocked and just handle the remaining balance personally without all the middleman interference.

Thanks.

boldharbor20 said:Hey everyone,

I’ve got a question and could really use some perspective here. I’m currently dealing with three different collection agencies regarding cash assets, with the total debt sitting at about 8 $0.00; it originally started out at 15,000, but I’ve managed to chip away at it a little over time. I was wondering if there’s any actual chance of petitioning these collectors to lift the freezes on my bank accounts if I propose a direct payment plan—basically, paying them off in monthly installments directly rather than going through a central clearinghouse like Goldman Sachs. My goal is to get my accounts unblocked and just handle the remaining balance personally without all the middleman interference.

Thanks.

Honestly, only a fool would try that... because why would you unfreeze an account before the debt is actually settled? Usually, those installment plans are negotiated well before the collection orders are even finalized.

John Clark6 said:Honestly, only a fool would try that... because why would you unfreeze an account before the debt is actually settled? Usually, those installment plans are negotiated well before the collection orders are even finalized.

That’s what I figured, but I had to ask just to stop the nagging in my own head. 🙂

One more thing—has anyone here dealt with official statements from the IRS or major credit bureaus? You know, those formal breakdowns showing exactly how much they claim you owe, who the collection agencies are, interest rates, all that fun stuff. Does anyone know what they charge for those or how they actually get them sent over?

If an American citizen loses a court case and ends up facing a judgment or garnishment, could they theoretically dodge the whole mess by just moving abroad?

And if that’s actually an option, which countries would make sense? I mean, are there places where an American court order wouldn't have any teeth to touch their bank accounts—maybe somewhere like Canada, Mexico, Germany, the USA, Canada, Australia, or South Africa...?

Honestly, I can't stop thinking about what you said in every other 😁

It won't work under American enforcement procedures.

However, you can request recognition of the foreign court judgment in any of those countries and then proceed with the collection according to their specific local laws.

If there's a significant amount on the line, the creditor will make sure it gets handled...

Do you happen to know of any real-world cases like this? I'm just asking out of pure curiosity 🙂

Absolutely.

Not too long ago, someone was hit with an enforcement action over in Mexico regarding about $9,000 in legal fees.

And when it comes to these other European Union countries? It’s even faster and easier there.

Susan Thompson15 said:Absolutely.

Not too long ago, someone was hit with an enforcement action over in Mexico regarding about $9,000 in legal fees.

And when it comes to these other European Union countries? It’s even faster and easier there.

Do you really think Australia or South Africa gives a damn about American enforcement laws? 🤷

(Besides, what we consider a massive amount of money here in the States might not even register as a big deal in some other country...)

ruggedmaker2 said:They're going to take it all. See, what Avon pays you isn't technically a salary or a pension; it's just "other income," and that stuff isn't protected by law.
If you look at the FINA website, they list exactly what counts as protected income (for example, they protect 2/3 of your wages or pension, and child benefits or disability payments are fully protected). Aside from those specific things, there might be a few other exceptions under special regulations, but "side hustle" money isn't one of them. Bottom line: your Avon money is fair game for the collectors.

Look on the bright side: you'll be paying off that debt faster this way. Isn't that actually what you want? Paying it off sooner so you aren't stuck drowning in interest for years?

An enforcement action through FINA hits every single cent you have. That means no matter which bank you run to, if you open an account, it's going to be frozen. There's no hiding.
Honestly, you could have avoided this whole mess much more easily if you had just sat down and worked out a payment plan with whoever you owe. Since you didn't reach a deal and didn't pay the debt, you ended up here. Once the debt is cleared, they'll unfreeze everything.
As simple as that!

Hah! If only reality worked that way. My own account was frozen back in December 2013 due to some court fees I paid in September 2013. To this very day, it remains locked because nobody can seem to figure out which department is actually responsible for unfreezing it. It isn't "as simple as that"; it's a Kafkaesque nightmare of incomprehensible bureaucracy that defies all logic.

Just so you know, when a garnishment is issued, they track everything tied to your Social Security number, so it doesn't matter which bank you use.

boldharbor20 said:That’s what I figured, but I had to ask just to stop the nagging in my own head. 🙂

One more thing—has anyone here dealt with official statements from the IRS or major credit bureaus? You know, those formal breakdowns showing exactly how much they claim you owe, who the collection agencies are, interest rates, all that fun stuff. Does anyone know what they charge for those or how they actually get them sent over?

I have never seen anything like that. In fact, the IRS employees act as if they are handling classified state secrets; they'll tell you the total amount causing the freeze and who initiated it, but even then, the info is often wrong. There are no official documents, no breakdown of costs... it’s absolutely absurd.

velvetskipper19 said:If an American citizen loses a court case and ends up facing a judgment or garnishment, could they theoretically dodge the whole mess by just moving abroad?

And if that’s actually an option, which countries would make sense? I mean, are there places where an American court order wouldn't have any teeth to touch their bank accounts—maybe somewhere like Canada, Mexico, Germany, the USA, Canada, Australia, or South Africa...?

On that note, I'm wondering about protecting one's home. For instance, would transferring a house title to an offshore company actually work?

velvetskipper19 said:Do you really think Australia or South Africa gives a damn about American enforcement laws? 🤷

(Besides, what we consider a massive amount of money here in the States might not even register as a big deal in some other country...)

They don't care about American interests—they care about their own. 😉

Every country operates under its own enforcement laws, regardless of the name...

Once an American court recognizes a foreign judgment through a recognition proceeding, that decision effectively becomes a ruling of that foreign state. It’s no longer just an "American" issue; you're playing by their rules, which can be much stricter than ours...

The actual dollar amount is secondary... I only mentioned it because the assumption is that an American creditor won't bother fighting through a foreign legal system for a tiny claim (hiring local counsel, etc.)... but for a substantial sum, they absolutely will.

There are major law firms in the West that specialize specifically in these types of recognitions, though naturally, they charge a massive commission ☕

Sam Wright21 said:Hah! If only reality worked that way. My own account was frozen back in December 2013 due to some court fees I paid in September 2013. To this very day, it remains locked because nobody can seem to figure out which department is actually responsible for unfreezing it. It isn't "as simple as that"; it's a Kafkaesque nightmare of incomprehensible bureaucracy that defies all logic.

Just so you know, when a garnishment is issued, they track everything tied to your Social Security number, so it doesn't matter which bank you use.

I have never seen anything like that. In fact, the IRS employees act as if they are handling classified state secrets; they'll tell you the total amount causing the freeze and who initiated it, but even then, the info is often wrong. There are no official documents, no breakdown of costs... it’s absolutely absurd.

On that note, I'm wondering about protecting one's home. For instance, would transferring a house title to an offshore company actually work?

Honestly, your situation sounds absolutely wild.
Look, I know there are all kinds of incompetent bureaucrats out there, but the idea that nobody can unfreeze an account after everything's been paid off for years? Sorry, but I find that hard to swallow.

Because of my line of work, I deal with garnishments all the time. I have employees who've had liens from pretty much everyone and everything—total headaches, believe me—but never, ever has anyone been stuck with a frozen account long after settling their debt.

I've seen plenty of cases where people paid the court costs but didn't read the fine print or fail to submit proof of payment, so they ended up getting hit with a levy. But they always sorted it out by filing an appeal. This whole thing you're describing is just bizarre.

And this part about nobody knowing who's in charge of unblocking it? That's a little 🙄
to me. Of course they know. They're just being lazy. Clearly, some people just aren't doing their jobs.
Take it to the local news or blast it on social media and see how fast that account gets unfrozen.

See, this is exactly what I was talking about—I sent over the proof of payment twice now. Honestly, I’ve lost track of how many people I’ve had to call just to get someone to listen.
I’m fully expecting JPMorgan Chase to go ahead and lift my overdraft now, considering my account has been frozen for months on end. 🙂

And yeah, you’re right; I really ought to file this under the Consumer Protection code, but frankly, I just don't have the mental bandwidth to deal with it amidst all this chaos.

Hey everyone, so listen to this. An enforcement notice showed up at my home address this past Wednesday, but since I’m living in Washington, D.C., I didn't even see it until yesterday.

Back in 2009, I got caught dodging a fare on an Amtrak train—it was a trip from D.C. to somewhere else. I didn't have the cash for a ticket; things were just rough back then. The ticket was $8.00, the fine was $100, plus the cost of the ride itself. My mom filed an appeal for me since I was under 18, and if I remember correctly, they actually granted it and wiped the fine. But that document? It's gone forever. Now, out of nowhere, I get hit with an enforcement order from $359 regarding that old fine of $100 plus the fare. Since I'm a student, all I've got is a checking account with a balance of $0.00, and I'm already sitting at $333 in overdraft. I don't have a job, let alone any property or assets. Is there any way they can forgive this debt based on my financial situation or that old court ruling they should still have on file?

Susan Thompson15 said:Absolutely.

Not too long ago, someone was hit with an enforcement action over in Mexico regarding about $9,000 in legal fees.

And when it comes to these other European Union countries? It’s even faster and easier there.

That makes sense, but how do you even track someone down? Like, if John Doe moves away from the States and you have zero clue where he went... how do you locate him? I'm guessing you can't just walk into a police station and tell them you need help finding someone who owes you money...
P.S. I'm not doing anything wrong, and I'm certainly not planning a getaway—I'm just incredibly curious.😁

Dana Chavez2 said:Hey everyone, so listen to this. An enforcement notice showed up at my home address this past Wednesday, but since I’m living in Washington, D.C., I didn't even see it until yesterday.

Back in 2009, I got caught dodging a fare on an Amtrak train—it was a trip from D.C. to somewhere else. I didn't have the cash for a ticket; things were just rough back then. The ticket was $8.00, the fine was $100, plus the cost of the ride itself. My mom filed an appeal for me since I was under 18, and if I remember correctly, they actually granted it and wiped the fine. But that document? It's gone forever. Now, out of nowhere, I get hit with an enforcement order from $359 regarding that old fine of $100 plus the fare. Since I'm a student, all I've got is a checking account with a balance of $0.00, and I'm already sitting at $333 in overdraft. I don't have a job, let alone any property or assets. Is there any way they can forgive this debt based on my financial situation or that old court ruling they should still have on file?

It’s tough... just because you don't have it now doesn't mean it won't catch up to you in a year or two.😁
Has it crossed your mind to just head down to the courthouse and ask for a copy of that release?

hollowmason64 said:That makes sense, but how do you even track someone down? Like, if John Doe moves away from the States and you have zero clue where he went... how do you locate him? I'm guessing you can't just walk into a police station and tell them you need help finding someone who owes you money...
P.S. I'm not doing anything wrong, and I'm certainly not planning a getaway—I'm just incredibly curious.😁

It’s tough... just because you don't have it now doesn't mean it won't catch up to you in a year or two.😁
Has it crossed your mind to just head down to the courthouse and ask for a copy of that release?

If there's money on the line, believe me, finding people is easy... people get motivated... personally, I would 😍

Nobody just vanishes into thin air ☕ ...you can always dig something up. ☕

My neighbor is refusing to pay the maintenance fees we all agreed on. He’s just making up his own number because he claims he doesn't like the work we're having done—so he pays half what he actually owes. He filed an objection to the enforcement order about two months ago. Based on anyone's experience, how long does it usually take the courts to wrap this up? What kind of stuff will the judge actually look for before making a decision? Also, is it possible they could check his social security or pension info to verify if he can actually afford the amount we set?

Susan Thompson15 said:If there's money on the line, believe me, finding people is easy... people get motivated... personally, I would 😍

Nobody just vanishes into thin air ☕ ...you can always dig something up. ☕

Basically—there’s no way to dodge a debt unless you pack up and move to Hawaii or some other tiny island nation 😁

Who exactly is responsible for enforcing a European Order for Payment when a bank within the USA refuses to comply with a court judgment—specifically when they’re intentionally dragging their feet just to stall the payout? I mean, what is the actual legal protocol for an enforceable order in this situation?