Wage garnishments and collections

Hey everyone.
Here’s the situation: back in June, I sold my car—fully notarized contract and everything. Fast forward to October 4th, and I get hit with a notice from the local police department in San Diego stating that a traffic violation occurred seven months ago. They want the details of whoever was behind the wheel at the time. They gave me a strict 15-day window to provide that info. So, I do the right thing. Within about three or four days, I send off the requested information via certified mail. But before that even settles, I check my bank account and realize they’ve already frozen my funds through a levy. It looks like someone at the precinct in San Diego let that initial notice sit in a desk drawer for two months while the clock was ticking, and now I'm the one getting screwed. Is there any point in fighting this bureaucracy, and if so, what’s the play here? Thanks in advance.

Hey there... so I’m wondering if anyone here knows the deal with this... I’ve got a debt with the IRS of about $60 $0.00. They’re already steadily taking 1/3 of my paycheck... but now I’ve got this whole mess from May where they're trying to garnish everything at once... Today, I get a call from some collection agency that bought my old T-Mobile debt, and they’re threatening me! They said if I don't pay a chunk by the end of the month, they’re going to start seizing my stuff... basically, they want to come right to my house. I told them straight up: I can't pay right now because a portion of my wages is already being withheld! This is like the fifth agency in line trying to collect, and they have absolutely no intention of waiting their turn—they just want to show up at my door. Here’s the thing: I live in my mother-in-law's house, so nothing in there actually belongs to me. I don't even own a car! Can they really just barge into my home instead of waiting for their turn through the proper channels at the IRS??... Because if that's how it works, then the second or third person in line could just show up whenever they feel like it. Does anyone actually know how this process works? Thanks a million!!

If I were in your shoes, I’d definitely look into it—because $60,000 is a pretty significant amount of money! Once you factor in the interest and the fact that they already have everything "properly" documented, getting them to back off might be a bit of an uphill battle. I guess it might be worth exploring if they can pivot the enforcement from cash to real estate or personal property instead. If you don't own anything, then maybe you're in the clear for now, but—and this is a big "but"—that doesn't mean they won't try to dig around through a seizure of personal assets to see what's there.

So, I was talking to my contact at Fin today, and they actually confirmed it—my accountant backed them up too! Apparently, I can just get in line with the IRS, wait my turn, and once everything is officially processed, there won't be any weird shifts in how the funds are collected regardless of where you were sitting in the queue. Nobody gets to cut in front of anyone else! And obviously, interest keeps ticking away. I’ve had this confirmed by two different sources now, which gives me a lot of confidence. Since I don't have anything else to pull from right now, they'll just take it directly from my paycheck. I'm really crossing my fingers that it plays out exactly like they promised!

Back in 2003, I found myself staring down a debt on an American Express card. A final judgment for collection was handed down on June 27, 2006, and the whole case file ended up archived at the courthouse back on October 20, 2008... Given that nothing has actually been enforced since then, is there any chance I can claim the statute of limitations? Thanks!

nimbleranger652 said:Hey everyone.
Here’s the situation: back in June, I sold my car—fully notarized contract and everything. Fast forward to October 4th, and I get hit with a notice from the local police department in San Diego stating that a traffic violation occurred seven months ago. They want the details of whoever was behind the wheel at the time. They gave me a strict 15-day window to provide that info. So, I do the right thing. Within about three or four days, I send off the requested information via certified mail. But before that even settles, I check my bank account and realize they’ve already frozen my funds through a levy. It looks like someone at the precinct in San Diego let that initial notice sit in a desk drawer for two months while the clock was ticking, and now I'm the one getting screwed. Is there any point in fighting this bureaucracy, and if so, what’s the play here? Thanks in advance.

First, you'll want to head over to the IRS to pull an official certificate regarding the garnishment—get the specific amount and find out exactly who initiated it, specifically that case number. From there, you take that court order and deal with the court directly, and then you just go from there...

ironfalcon28 said:Back in 2003, I found myself staring down a debt on an American Express card. A final judgment for collection was handed down on June 27, 2006, and the whole case file ended up archived at the courthouse back on October 20, 2008... Given that nothing has actually been enforced since then, is there any chance I can claim the statute of limitations? Thanks!

If the creditor hasn't taken any actual steps toward enforcement since then...

I’ve been hitting a wall here and could really use some guidance or advice...

So, here’s the situation: a final enforcement order was issued back in 2003. Then, in 2006, the wage garnishment proceedings were stayed. Fast forward to 2014, and I suddenly receive a notice regarding a proposal to amend the enforcement matter.

Is there any legal ground to invoke the statute of limitations here?

ironfalcon28... look, if that final decision was officially handed down on June 27, 2006, then the clock starts ticking right from the moment it was issued—which means the statute of limitations was effectively reset. I guess you might want to try asking about this on the forum again sometime in 2016 🙂

princess_leia... well, if a full ten years have actually passed, then you should be in the clear. Though, honestly? It feels to me like someone might have timed this just to be difficult.

hiddenranger36 said:So, I was talking to my contact at Fin today, and they actually confirmed it—my accountant backed them up too! Apparently, I can just get in line with the IRS, wait my turn, and once everything is officially processed, there won't be any weird shifts in how the funds are collected regardless of where you were sitting in the queue. Nobody gets to cut in front of anyone else! And obviously, interest keeps ticking away. I’ve had this confirmed by two different sources now, which gives me a lot of confidence. Since I don't have anything else to pull from right now, they'll just take it directly from my paycheck. I'm really crossing my fingers that it plays out exactly like they promised!

If your garnishment isn't hitting your paycheck directly—meaning everything is being handled through the IRS on your checking accounts—there’s an interesting loophole in the Uniform Commercial Code that lets people wiggle out of these situations. It could be a lifesaver against predatory lending (honestly, 12% is basically usury depending on how you measure current economic gaps). If it's not a secret, what exactly is in that debt of $20? Just curious. I can send you the procedure via DM if you have all your garnishments running through the IRS instead of through an employer. Isn't it tempting to know how to receive your pay while forcing a creditor to walk away from part of the debt? 😉

Jerry Chase42 said:I’ve been hitting a wall here and could really use some guidance or advice...

So, here’s the situation: a final enforcement order was issued back in 2003. Then, in 2006, the wage garnishment proceedings were stayed. Fast forward to 2014, and I suddenly receive a notice regarding a proposal to amend the enforcement matter.

Is there any legal ground to invoke the statute of limitations here?

Of course. 😉

ironfalcon28 said:Back in 2003, I found myself staring down a debt on an American Express card. A final judgment for collection was handed down on June 27, 2006, and the whole case file ended up archived at the courthouse back on October 20, 2008... Given that nothing has actually been enforced since then, is there any chance I can claim the statute of limitations? Thanks!

So you'll be sweating at the register for another year and nine months, praying the clerk doesn't tell you your card was declined. I could list the steps you need to take, but honestly? I doubt you'll actually follow through. What's the point in even mentioning them? 😉

Got an Optimiz bill from July 2013—is this thing officially dead yet? I’ve seen conflicting stuff online saying the statute of limitations for this kind of account is one year, but then other places say five.

Longer post

The statute of limitations for these obligations and claims runs for three years.

Thanks for the reply

Oh, don't even worry about thanking me—honestly, if I gave you the wrong info, that's on me! But here's the deal: the statute of limitations is just one year. That is, of course, assuming nobody has already gone ahead and sent a proposal for enforcement to a notary public.

John Clark6 said:Oh, don't even worry about thanking me—honestly, if I gave you the wrong info, that's on me! But here's the deal: the statute of limitations is just one year. That is, of course, assuming nobody has already gone ahead and sent a proposal for enforcement to a notary public.

It's three years. Check the RRIF.

John Clark6 said:Oh, don't even worry about thanking me—honestly, if I gave you the wrong info, that's on me! But here's the deal: the statute of limitations is just one year. That is, of course, assuming nobody has already gone ahead and sent a proposal for enforcement to a notary public.

They haven't sent anything to the notary yet—checked on it two days ago.

John Clark6 hit the nail on the head. The guy actually knows his stuff.
But look, let’s quit dancing around it and get down to brass tacks. Let's just look at what the US Code says:

One-year statute of limitations
Section 232.
(1) The following claims expire after one year:
1) Claims for compensation regarding delivered electricity, heating, gas, water, chimney sweeping services, or sanitation services, provided the delivery or service was performed for residential purposes.
2) Claims from radio and television stations for the use of radio and television receivers.
3) Claims for postal, telegraph, or telephone services—including phone usage, PO boxes, and other related charges billed on a three-month or shorter cycle.
4) Subscription claims for periodic publications, calculated from the end of the period for which the publication was ordered.
(2) The statute of limitations runs even if the deliveries or services have been extended.

So, what am I supposed to do here? Since this bill is from July 2013, there’s one theory saying it's already expired—but then again, another says it's still valid.

Patrick Chase4 said:So, what am I supposed to do here? Since this bill is from July 2013, there’s one theory saying it's already expired—but then again, another says it's still valid.

And why the sudden interest? Are you actually involved in some collection action or something? I can't quite wrap my head around why this specific bill is weighing on you so much. From what I've seen, it’s actually pretty rare for bills to hit the statute of limitations window before things get moving—people tend to sit around calculating expiration dates, while the actual seizure proposal is already sitting on a desk at JP Morgan Chase. Sometimes they just don't hand it over immediately, and suddenly months have slipped by.

Is it actually possible to initiate a collection action against a company that’s already been dissolved?

Thanks,