Legal Question in Credit and Debt Law in Virginia

Re: Defamation (Garnishment)

I am baffled by why you would be signing any new loan papers with them. This sounds very peculiar, but I do not understand enough to know what is going on here. So I cannot really give any meaningful answer, except to say "Whoa... Don't do anything until you check it out."

Asking you to have a co-signer sounds like an attempt to get soeone else on the hook for your debt, and I would be extremely cautious.

However, if they are threatening to take away and foreclose on a house or something then of course you have to consider the alternative of losing the house, etc.

If any creditor garnishes a joint account, you must immediately file an objection with the court that the account is a joint account. Frankly, I don't remember whether you must file a motion and schedule a hearing or not. Talk to the clerk of the court. There must be a prompt hearing within (I think) 7 days.

At the hearing, the joint account holder should be prepared to testify that the other person put in most or all of the money into the account. The creditor will not be able to garnish that part of the money that belongs to the other joint account holder.

I don't see how it can be defamation if the person did not have any awareness that your daughter would pick up the telephone and overhear. However, it easily can be if a collection agency should have known that their statements would be overheard by a third party.

However, bear in mind that defamation must be FALSE to be defamation. A negative statement that is true is not defamation.