Legal Question in Credit and Debt Law in California

Debt Renegotiation/Wage Garnishment Question
My wife and I are attempting to re-negotiate (using a third-party non-attorney service) a mountain of debt acquired in the 1990's while I was highly paid in industry. After years of paying our monthly payments on time, I went through numerous layoffs/lack of payment from consulting companies, and we finally were unable to meet our payment obligations.

We have been involved with this debt negotiation service for 13 months, and they have settled a couple of our smaller accounts.

One of our bigger accounts has gone through the farcical arbitration procedure, and is now threatening a judgment and garnishment of wages. Our negotiators have attempted to set up a payment plan with the law firm, but they claim it's not for enough $$. My questions are these:

1)What is the maximum amount they can garnish? I've heard the 25% of disposable income rule, but there seems to be debate over whether such items as rent are disposable, or simply taxes.

2) Can they garnish wages from both my wife and I if the account was only in one of our names?

3) Can the law office actually call/harass the HR dept and my supervisor at my place of employment?

ANy help would be appreciated...

Asked on 5/07/03, 6:17 pm

Ken Koenen Koenen & Tokunaga, P.C.

0 users found helpful

0 attorneys agreed

Re: Debt Renegotiation/Wage Garnishment Question

25% after taxes. You use your disposable income for rent.

Whether they can go after both of your checks depends on a lot of factors.

No one is allowed to contact your employer if you tell them (preferrably in writing) that you do not want them to.

Answered on 5/07/03, 7:15 pm

Keywords

Match Any Match All

Country

State

Area of Law