Legal Question in Credit and Debt Law in California

Re: Wage Garnishment

If they sue, countersue.

Re: Wage Garnishment

If they sue you, obtain a judgment against you for the funds advanced, and are successful, then yes they can garnish your wages. They are, however, a long way off from there. When you say they are out of business, are they in Bankruptcy, or has a Receiver been appointed? These are important questions because how aggressive the company might be in trying to collected these "advances" is going to depend a lot on their status.

Let's talk a little about your relationship with them. Although you were paid as a commissioned contractor, there is a very good likelyhood in California that you are a Statutory Employee. Unless you hold a license (real estate sales/broker or mortgage broker), or you worked totally independently (you set your hours, where you work, how you get the work done, etc...) then there is a good likelyhood that the CA Employment Development Department will make a determination that you were actually an employee, not a contractor. If they continue to threaten you, I'd contact EDD and file a wages claim for the time you worked there - that will very likely get them to back off.

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