Legal Question in Business Law in Illinois

Collection Agency contacted the Company that I am a Independent Conttractor thru they told them they needed to deduct 15% out of every check...They said they had a court order...I have never seen it...Can they do this and what can I do? This is from 1999/2000 they want $2300 the original debt was around $800.00 never heard from them until recently.


Asked on 10/29/10, 7:34 pm

2 Answers from Attorneys

The "employer" was served with garishment papers. As long as there's a judgment against YOU the judgment creditor (the person you owe the money to) has the legal right to collect it any way the law allows, and a garnishment is one way. Your employer should let you know, but that's about as far as it goes; they are legally obligated to collect and turnover the money to the creditor unless the papers are wrong. The reason why it's $2,300 and not $800 is that you have statutory interest for about 10 years (WOW), attorney fees and court costs on top of it. What did you think -- it would go away? You can contact them THROUGH AN ATTORNEY or on your own and try to settle for less -- because I'm sure at the rate of 15% per "paycheck" it will take YEARS to pay off in full, right? The attorney can check to make sure the garnishment papers are accurate too.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are based solely on Illinois law unless stated otherwise.

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Answered on 11/03/10, 7:46 pm
Kevin B. Murphy Franchise Foundations, APC

The other attorney is right on point here. When you owe money and the other side has a legal right to garnish your wages, it's time to pay the piper or try and negotiate for a lesser amount. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

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Answered on 11/04/10, 4:46 am


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