Wage garnishments and collections

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

ruggedmaker2 said:Dead wrong!
You can open a protected account before a garnishment actually hits, sure, but only if you provide the paperwork proving that an execution is actually imminent.

Article 22.

(1) Under Section 212, Paragraph 1 of the enforcement law, the debtor is required to notify the IRS regarding any incoming payments or benefits listed under Section 172, or any amounts exempt from garnishment under Section 173, when dealing with fund seizures.

(2) If the IRS receives the notice mentioned in Paragraph 1 and finds nothing recorded in the registry as a legal basis for payment, they will accept that notice provided the debtor attaches a copy of the underlying documentation showing that a specific garnishment on their funds has been ordered.

I was a witness to this working. I saw a lady work things out with a Law Firm XY to agree to an administrative withholding on her salary just so they wouldn't freeze her checking account. There wasn't even an active execution yet—nothing had been filed. She went down to the IRS and got into a massive argument with the clerks who were claiming exactly what you two are saying. But look, the law clearly states you can't seize certain parts of a paycheck (depending on the pay grade), and it’s the debtor's job to notify the IRS about funds that are legally exempt from seizure. What if she had a levy hit her checking account while a withholding was already set on her wages? The IRS and the bank don't cross-reference anything; they just execute orders. (I know, it's hard to explain how messy this is). After arguing with the clerks and finally getting a legal specialist from the IRS called in, the lady pulled out a document proving the withholding was set, that a third of her income was already being diverted, and that she had notified the agency about her exempt earnings. Me and some other guy standing there signed off on it. She even asked if we'd be willing to sign it before a notary. Eventually, the legal advisor stepped back to consult a supervisor, came back, and told the staff to open the protected account for her. Bottom line: legal interpretations say one thing, but reality is often something else entirely.

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

The law says so, plain and simple. But everyone here forgets one thing: an execution is a risk for the creditor. There's always a chance they won't collect anything. A creditor will accept whatever the debtor demands if they actually want to see any money. If they don't care about collecting, they take the risk. That’s why I give people advice on how to handle it.
As if screwing over the creditor is some kind of science. We see examples of pre-settlement negotiations and fake invoices all the time. Is it hard to make up a fake loan agreement for, say, ten thousand dollars and immediately trigger an administrative freeze on assets and a third of a paycheck? (We've touched on this before, but it hasn't been explained properly). Not at all. A notary just verifies the signature. People even get divorced on purpose just so child support—which gets priority—can be collected. People sign documents claiming a parent abandoned them or failed to meet obligations. One interesting legal loophole: the statute of limitations resets whenever the debtor acknowledges the debt. So, a parent signs a paper admitting they owe child support for the next 20 years of a kid's life. Sure, it's shady, maybe even an abuse of rights, but you have to prove it in court, right? You bring in a neighbor as a witness who swears, "Oh, he's a saint, and she's just being difficult," and suddenly your whole case collapses like a house of cards.
The reality is that uncollectible executions are increasing because once people get over the initial shock, they realize how to game a system that was designed to crush them. That's exactly why banks offer settlements for just the principal amount.
I always aim for a fair relationship between creditor and debtor. A person owes money, and they should pay it. But not in a way that lets them get robbed. Based on that, I give the advice I give here on the forum.

Susan Chase70 said:You can't just open it whenever you feel like it... It only becomes possible once the writ of execution has been finalized, and then the debtor is responsible for proving everything to the IRS. According to the regulations regarding the methods and procedures for enforcing levies on monetary assets...

Where exactly is this written? Under the obligatory relationship law, costs are settled first, then interest, and only then the principal... though the creditor does have the option to set their own order of priority. It would be just lovely for creditors if debtors were allowed to dictate their fate like this...

Not only does producing such a transcript constitute a criminal offense, but in civil court, it’s easily debunked... which just leads to more legal fees and attorney costs being billed against you. But hey, if that's what people want...

From what I can gather, the gentleman isn't facing an actual execution yet; he just got a warning notice. Until an execution is officially ordered, he can and should dispose of his property however he likes. Even during an execution process, if the creditor specified a garnishment of wages or bank accounts, he can still manage his other assets however he wants.

Honestly, here is what I would do if I were him. Since there is no execution yet, everything is legally clean regarding transferring assets. I'd gift the property to a minor or quickly sell off excess real estate. I’d sign a fake loan agreement for ten thousand dollars with someone close to me. After a week, I’d sign a document acknowledging the restriction on disposing of property and wait like a coiled spring. Then, I’d head to a Law Firm XY to negotiate. If they grill me too hard, I’ll just walk over to the bank's legal department, explain the situation, and offer an installment plan for the principal and legal fees. We’d wrap it all up in a formal contract, of course.

Noah Reyes4 said:Alright, here's the deal.

I owe Verizon about $267. I called the IRS, and they told me that the collection matter tied to my SSN has been handed off to Law Firm XY.

So, what's the vibe here—is the execution already in motion? And if I just cough up the cash right now, will they pull the plug on the whole process?

I'm a student, and this is all pretty new territory for me. I'm kind of stuck; should I just sit tight and wait for a notice in the mail, or should I just pay it?

Thanks in advance for any help.

Call the law firm immediately and set a time to talk. Get ahead of them. Tell them the debt was paid ages ago and you have no idea what they're talking about. Make up a story: tell them you only found out about this when you tried to sign up for a new plan at a retail store, and they just sent you straight to the lawyers. Stick to the story. Don't hesitate, don't stutter. Demand an itemized breakdown of the costs—attorney fees, interest, principal—and tell them you'll fax proof of payment tomorrow. Once you get that breakdown, make sure you actually pay it. I assume you have the bills for those $267 with the reference number? Pay those exact amounts using that exact reference number. Then handle the attorney fees; if money is tight, the interest can wait a bit. Fax everything to the law firm once it's done. If the execution is already active, come back here and we'll tell you which parts of the execution you can skip if you pay within 8 days of receiving the notice. Just use your head and pay your debts.
Bottom line: don't sit there like an idiot waiting for fate to knock on your door. Fix the problem.

rowdyraven112 said:I was a witness to this working. I saw a lady work things out with a Law Firm XY to agree to an administrative withholding on her salary just so they wouldn't freeze her checking account. There wasn't even an active execution yet—nothing had been filed. She went down to the IRS and got into a massive argument with the clerks who were claiming exactly what you two are saying. But look, the law clearly states you can't seize certain parts of a paycheck (depending on the pay grade), and it’s the debtor's job to notify the IRS about funds that are legally exempt from seizure. What if she had a levy hit her checking account while a withholding was already set on her wages? The IRS and the bank don't cross-reference anything; they just execute orders. (I know, it's hard to explain how messy this is). After arguing with the clerks and finally getting a legal specialist from the IRS called in, the lady pulled out a document proving the withholding was set, that a third of her income was already being diverted, and that she had notified the agency about her exempt earnings. Me and some other guy standing there signed off on it. She even asked if we'd be willing to sign it before a notary. Eventually, the legal advisor stepped back to consult a supervisor, came back, and told the staff to open the protected account for her. Bottom line: legal interpretations say one thing, but reality is often something else entirely.

The law says so, plain and simple. But everyone here forgets one thing: an execution is a risk for the creditor. There's always a chance they won't collect anything. A creditor will accept whatever the debtor demands if they actually want to see any money. If they don't care about collecting, they take the risk. That’s why I give people advice on how to handle it.
As if screwing over the creditor is some kind of science. We see examples of pre-settlement negotiations and fake invoices all the time. Is it hard to make up a fake loan agreement for, say, ten thousand dollars and immediately trigger an administrative freeze on assets and a third of a paycheck? (We've touched on this before, but it hasn't been explained properly). Not at all. A notary just verifies the signature. People even get divorced on purpose just so child support—which gets priority—can be collected. People sign documents claiming a parent abandoned them or failed to meet obligations. One interesting legal loophole: the statute of limitations resets whenever the debtor acknowledges the debt. So, a parent signs a paper admitting they owe child support for the next 20 years of a kid's life. Sure, it's shady, maybe even an abuse of rights, but you have to prove it in court, right? You bring in a neighbor as a witness who swears, "Oh, he's a saint, and she's just being difficult," and suddenly your whole case collapses like a house of cards.
The reality is that uncollectible executions are increasing because once people get over the initial shock, they realize how to game a system that was designed to crush them. That's exactly why banks offer settlements for just the principal amount.
I always aim for a fair relationship between creditor and debtor. A person owes money, and they should pay it. But not in a way that lets them get robbed. Based on that, I give the advice I give here on the forum.

From what I can gather, the gentleman isn't facing an actual execution yet; he just got a warning notice. Until an execution is officially ordered, he can and should dispose of his property however he likes. Even during an execution process, if the creditor specified a garnishment of wages or bank accounts, he can still manage his other assets however he wants.

Honestly, here is what I would do if I were him. Since there is no execution yet, everything is legally clean regarding transferring assets. I'd gift the property to a minor or quickly sell off excess real estate. I’d sign a fake loan agreement for ten thousand dollars with someone close to me. After a week, I’d sign a document acknowledging the restriction on disposing of property and wait like a coiled spring. Then, I’d head to a Law Firm XY to negotiate. If they grill me too hard, I’ll just walk over to the bank's legal department, explain the situation, and offer an installment plan for the principal and legal fees. We’d wrap it all up in a formal contract, of course.

But there *is* an execution. 😉
That "administrative hold" thing? That's still an execution. It's just a garnishment where the debtor gives their consent.
In that lady's case, they were only hitting her wages (meaning her employer handles it), rather than seizing everything she owns (which is what the IRS does to every single account you have).
Both versions—the wage garnishment and the total asset seizure—are governed by the Enforcement Law.

ruggedmaker2 said:But there *is* an execution. 😉
That "administrative hold" thing? That's still an execution. It's just a garnishment where the debtor gives their consent.
In that lady's case, they were only hitting her wages (meaning her employer handles it), rather than seizing everything she owns (which is what the IRS does to every single account you have).
Both versions—the wage garnishment and the total asset seizure—are governed by the Enforcement Law.

Bravo. I just highly doubt they'll actually wrap their heads around it.

If I get hit with a 2008 writ of execution, how much am I actually looking at, and what's the deal with paying it within that 8-day window?

Basically, I called the local water department, and they just pointed me straight to a lawyer. That lawyer gave me a specific total—it was attached as a debt statement following the writ of execution—and told me to pay it up and then let the water department know. So, I did exactly that... but they didn't stop the enforcement process.
Fast forward a few years, and everything has just become this massive legal mess involving two different lawsuits over the same damn thing... 😢

It all hinges on whether you're dealing with a court order or a notary's 2008 writ of execution. If it’s the latter, you should only be on the hook for the drafting fee, the filing fee, and the service costs.

My dad was involved in a lawsuit where he was actually the plaintiff, but he ended up losing the case. To make matters worse, just four days before he passed away, he was served with a judgment stating he owed the plaintiff roughly $1,800 in legal fees. I didn't have any clue this was even happening. Since then, I’ve inherited his property, and three days ago, I was hit with a 2008 writ of execution placed on that real estate because I'm his legal heir.

The total amount, including interest, comes out to about $11, and we're talking about a house worth at least $75,000. Honestly, I have the $11 sitting there ready to go. I could pay this off right now, and I would have done it much sooner if I had known about the debt, but I'm stuck. I don't know if there's still a way to settle this now that the court has granted the motion for execution against the property, or if an auction is my only remaining option. To top it all off, I can't get a hold of anyone at the Law Firm XY that sent over the notice—they're all apparently out on vacation, and I'm left wondering what my next move should be.

So, here’s the situation: I co-signed a loan for a buddy of mine. He was doing fine, everything was on track, until he hit a rough patch and lost his job for about six months. Now, because of that, a writ of execution was slapped on me. But here’s the kicker—in the meantime, they also hit him with an execution for that exact same loan. So now, both of us are getting bled dry by two separate executions for one single debt. Is it actually possible for two different people to be facing enforcement for the same damn loan? Since he’s the primary borrower, he should be the only one being chased for it while drawing his regular paycheck, yet here I am, having my own wages docked for the same credit line.

My apologies if this comes across as an answer.
Since I haven’t been paying my taxes as an individual, the government has initiated an execution against my financial assets. Given that I currently have zero income and absolutely no prospects of being able to pay it off, I’ve essentially made my peace with the situation. However, I am curious about how checking and savings accounts actually function in these scenarios? For instance, if a friend transfers money into my checking $33, does the government automatically seize it, or is there any way I can actually withdraw it if the execution is strictly targeting my salary (which, let's be honest, is a distant dream
)?

Ashley White said:My apologies if this comes across as an answer.
Since I haven’t been paying my taxes as an individual, the government has initiated an execution against my financial assets. Given that I currently have zero income and absolutely no prospects of being able to pay it off, I’ve essentially made my peace with the situation. However, I am curious about how checking and savings accounts actually function in these scenarios? For instance, if a friend transfers money into my checking $33, does the government automatically seize it, or is there any way I can actually withdraw it if the execution is strictly targeting my salary (which, let's be honest, is a distant dream
)?

Everything just disappears before you even realize it—you should probably look into opening a protected account.

Look, you set up a protected account specifically for income that qualifies—you can check the IRS website to see exactly which types of payments count.
Just a heads-up though: if some other individual tries to wire you money, that doesn't count as protected income, so it won't go into that specific account.
Unless, of course, they've gone and changed everything with these latest legal amendments. 🤷

Hey...
Looking for some input on a situation...

A bank initiated an execution about 7 years ago. The account has been frozen and everything has just sat there for a long time. Suddenly, this year, the bank starts sending letters wanting to settle things "to everyone's satisfaction." Two letters already this year. Previously, there were maybe one or two notices in total over the whole period. The situation was clearly explained—why the debt can't be paid—due to loss of property (fire) and unemployment... but until now, the bank couldn't care less.

Is this just a legal trick because the 10-year statute of limitations is approaching and they want to collect at any cost? Or is this a genuine settlement offer that my acquaintance should actually respond to?
They've tacked on all kinds of interest and xy fees. The guy simply can't pay because he's unemployed and has no assets left (unfortunately lost in the fire).
The debt is around $500 currently—if that matters for the analysis. Part of it has been paid... maybe $1,000 total has been scraped together so far.
I'm wondering why the sudden interest?

Supposedly, some kind of request needs to be sent to the creditors by the end of the month, and it might be possible to get the debt forgiven... some people are even mentioning media exposure... there were some shows on TV about this lately, right?

(This is a friend's case, so I don't have all the details, but I'm curious about the tricks lawyers use to lure victims in.)
Apologies if this has been covered before...
Any comments or experiences? Thanks.

Emily Doyle2 said:So, here’s the situation: I co-signed a loan for a buddy of mine. He was doing fine, everything was on track, until he hit a rough patch and lost his job for about six months. Now, because of that, a writ of execution was slapped on me. But here’s the kicker—in the meantime, they also hit him with an execution for that exact same loan. So now, both of us are getting bled dry by two separate executions for one single debt. Is it actually possible for two different people to be facing enforcement for the same damn loan? Since he’s the primary borrower, he should be the only one being chased for it while drawing his regular paycheck, yet here I am, having my own wages docked for the same credit line.

Yeah, it is.

Hi there,

Sorry to just jump in like this, but I was hoping someone could weigh in on a situation I'm dealing with. I'll be honest, I don't really know my way around legal procedures or enforcement actions, so any insight would be appreciated.

Here’s the deal... my father ended up owing Optima about $900. He received a formal notice from a notary last February. We reached out to them back in May and managed to work out a settlement where we'd pay off the debt in six installments of $150 each, sent directly to their account (the enforcement order hadn't hit the IRS yet at that point). We followed through on that, but we're currently stuck on one final installment that hasn't been paid because of a temporary shortage of funds. The last successful payment went out in October. A few days ago, my father checked with the IRS—his accounts were already frozen due to an existing debt with another bank—and he saw that an enforcement order from Optima had been filed for $1467. Is it actually possible for a debt to jump from 450 to $1467? I'm wondering if this might be an error on their end, considering we've already cleared five of the installments (I have all the payment receipts saved). I realize notary fees can be pretty steep. If this turns out to be a mistake, is there any way to have the order pulled from the IRS so we can just settle that last remaining payment?

Thanks in advance,

1. I’ve got an execution pending and just got this insurance ruling from the local court. It’s a massive stack of papers, but I can't make heads or tails of it. The first page says something like: "The applicant for insurance is awarded procedure costs in the amount of $100." Anyone dealt with this before? Do I actually have to cough up that $100, and if I do, what am I even getting? Insurance for what? I’m totally lost, help me out here :/
2. If there's an execution underway and I want to start paying off the debt, I should deal directly with the company I owe, right? Not the court or some government clerk. I just want to work out a payment plan with them so they don't trigger any more legal headaches. Also, does anyone know when I actually pay the court or the state officials?

So, from what I gather—and I might be wrong here—it looks like the creditor (in this case, the insurance company) couldn't quite get what they were owed through wage garnishments or pulling funds directly from your bank accounts. Because of that, it seems they're now moving to file a lien against your property. I suppose the insurance provider has to cover the initial $100 costs to register that lien, though—and there's the kicker—they’ll almost certainly try to pass those expenses right back onto you down the road. If I were in your shoes, I’d probably give the creditor a call and see if you can negotiate a settlement... assuming they're even willing to talk.

ps. and honestly, I think you left out about half the story there!

I know I haven't posted much lately—mostly because I have zero clue what to say. I’m not gonna dump everything I've picked up on here just yet.
Hopefully, I can actually pull a deal together soon.

wearyviper19 said:Hi there,

Sorry to just jump in like this, but I was hoping someone could weigh in on a situation I'm dealing with. I'll be honest, I don't really know my way around legal procedures or enforcement actions, so any insight would be appreciated.

Here’s the deal... my father ended up owing Optima about $900. He received a formal notice from a notary last February. We reached out to them back in May and managed to work out a settlement where we'd pay off the debt in six installments of $150 each, sent directly to their account (the enforcement order hadn't hit the IRS yet at that point). We followed through on that, but we're currently stuck on one final installment that hasn't been paid because of a temporary shortage of funds. The last successful payment went out in October. A few days ago, my father checked with the IRS—his accounts were already frozen due to an existing debt with another bank—and he saw that an enforcement order from Optima had been filed for $1467. Is it actually possible for a debt to jump from 450 to $1467? I'm wondering if this might be an error on their end, considering we've already cleared five of the installments (I have all the payment receipts saved). I realize notary fees can be pretty steep. If this turns out to be a mistake, is there any way to have the order pulled from the IRS so we can just settle that last remaining payment?

Thanks in advance,

Did you ever tell the notary about the installment agreement you made? And did you send them copies of those payment receipts?
Have you filed an official dispute against this $1467 garnishment?

It’s totally possible that Optima never told the notary anything, so as far as they're concerned, nothing has happened. Pick up the phone and start calling both Optima and the notary.

wearyviper19 said:Hi there,

Sorry to just jump in like this, but I was hoping someone could weigh in on a situation I'm dealing with. I'll be honest, I don't really know my way around legal procedures or enforcement actions, so any insight would be appreciated.

Here’s the deal... my father ended up owing Optima about $900. He received a formal notice from a notary last February. We reached out to them back in May and managed to work out a settlement where we'd pay off the debt in six installments of $150 each, sent directly to their account (the enforcement order hadn't hit the IRS yet at that point). We followed through on that, but we're currently stuck on one final installment that hasn't been paid because of a temporary shortage of funds. The last successful payment went out in October. A few days ago, my father checked with the IRS—his accounts were already frozen due to an existing debt with another bank—and he saw that an enforcement order from Optima had been filed for $1467. Is it actually possible for a debt to jump from 450 to $1467? I'm wondering if this might be an error on their end, considering we've already cleared five of the installments (I have all the payment receipts saved). I realize notary fees can be pretty steep. If this turns out to be a mistake, is there any way to have the order pulled from the IRS so we can just settle that last remaining payment?

Thanks in advance,

ruggedmaker2 said:Did you ever tell the notary about the installment agreement you made? And did you send them copies of those payment receipts?
Have you filed an official dispute against this $1467 garnishment?

It’s totally possible that Optima never told the notary anything, so as far as they're concerned, nothing has happened. Pick up the phone and start calling both Optima and the notary.

I’m not entirely sure why, but I’d be willing to bet they didn't even serve them the 🤣
properly.

So, I had this old debt with AT&T, and now they’ve offloaded the whole thing to some collection agency—Credit Express, to be exact. It’s one of those amounts where $667. Since I'm currently between jobs, these guys are already threatening to garnish my wages and freeze my accounts. I was wondering if they can actually pull that off without going through a notary first? Like, can they just jump straight to seizing funds without sending me an official notice that I can actually contest within that 8-day window if things aren't right? Thanks