Legal Question in Credit and Debt Law in Virginia
Credit Card in Collections...judgement/garnishment questions
In 2002, I got a credit card with a $1000 limit. I defaulted on payments, and it's been through a couple of different law offices/collectors. My current balance is $4686.55 due to interest. I have made offers to pay what I could each month, however was told it wasn't enough. I have since changed jobs, and am able to pay a little bit more, but was told that at this point, making payments won't stop the process of getting a judgement and/or being garnished. I know that I can't get it paid before it goes to court. If they place a judgement against me, is it certain I'll be garnished, or is there a chance I'll just have a judgement against me? This is the biggest chunk of debt I have. I don't owe enough to file bankruptcy. I was garnished once before on a loan, and they took everything out of my bank accounts. I haven't had a bank account for the last 3 years because this collection thing has been going on, and I was afraid of having my money taken again. Several people I've talked to said a credit card co. couldn't take your money out of the bank, but I still feel nervous about keeping it in there. Can they take it? Would I be better off to just close the accounts I have now until this is done? Any suggestions? Thanks!
1 Answer from Attorneys
Re: Credit Card in Collections...judgement/garnishment questions
Once the credit card company or their legal assignee obtains a judgment against you for the amount owed, they can then levy against your bank account up to the full amount owed and/or garnish up to 25% of your wages after mandatory deductions. If the collector can locate both your current employer and bank, there is nothing legally to prevent them from pursuing both means of enforcement.
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