Legal Question in Credit and Debt Law in Florida
Debt collector Garnisment of Bank Account
I had my Semi repossessed 6 years ago and we were never able to come to an agreement with the creditor about repayment of the remaining balance. They began court proceedings against us just before the statute of limitations expired. We refinanced our home over the summer, and took out some cash equity and, through and attorney, made a cash offer to the creditor to settle. We offered to pay the original balance plus any legal fees incurred in their attempt to collect this debt, if they would wave any interest. Our attorney has never gotten a response, positive or negative, to our offer from the creditor. Now 6 months later, the creditor has garnished our bank account. Can their non-response to our attempts to settle be useful in getting this matter resolved and getting our bank account released? We live in Florida, and I have done some research on the state laws pertaining to garnishment of my paycheck, but haven't found anything useful about a non-responsive creditor. Also, we have a federal tax refund, which I had hoped to use to as a supplement to our income during this economic down turn so that we do not get behind on other bills... Can they garnish that as well?
1 Answer from Attorneys
Re: Debt collector Garnisment of Bank Account
Unfortunately, judgment creditors are not required to discuss voluntary repayment of the debt with the debtor. Once a debt has been reduced to a judgment, the creditor has the right to have writs issued (including a writ of garnishment for bank accounts or wages). The creditor's refusal to negotiate is not a defense to garnishment.
However, there are several exemptions to garnishment that may apply. For example, if you qualify as head of family and the money garnished from your bank account is your wages, pension benefits, or other exempt source, then they would remain exempt and you should claim that exemption.
As for your tax return, the matter is even more complicated. Ultimately, it will depend upon the nature of the refund. If the refund is an overpayment of taxes (too much was withheld from your wages) then it is most likley subject to garnishment once it hits the bank. However, there is a provision of Florida law that exempts the earned income credit from creditors' claims.
Sorry it's not a simpler answer, but garnishment law (as you have probably discovered) is a pretty tangled forest. For more information about garnishments and exemptions, you can check out the Credit\Debtor's Rights page of our website at www.LaBellaLaw.com.
If you think you qualify for an exemption, you should contact an attorney right away to get your Claim of Exemption filed. Garnishment proceedings move fast.
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