Expert: Creditwrench - 5/5/2008

Question
I live in NC.  My husband received a summons for CC debt that falls within SOL.  I am preparing a response to file so as not to get a default judgement and try to fight it.

In NC wages cannot be garnished.  The only money that goes into our checking account is his paycheck which after paying basic bills leaves nothing left over.  Hence if we lose I am concerned that our only income will be seized and we won't even have money for gas to get to work.  His company only pays by direct deposit so we're stuck there.  Can something like a prepaid credit card (Walmart money card)be seized?  They accommodate direct deposit to load the card.  We do not mind paying in payments we can afford but given they didn't want to accept payments prior to this I don't see why they would now.  Just trying to protect losing all our income for a couple months thus creating far bigger worries.

Answer
Don't believe that a company can get away with demanding that employees accept direct deposit as a payment method. Your husband can demand that he be paid with paper checks and they have no choice but to comply according to federal law. Nor can they fire him for refusing to accept direct deposit. Don't get foolish enough to go for direct deposit into a Wal-mart money card. That will most likely turn out to be very expensive. Their gift cards are terrible and I doubt the money card is any better. Just have your hubby put in a request for paper checks and find someplace to cash them other than your bank. Also if you have any sum of money over say $20.00 in any bank or savings account get it out of there now. Don't close any accounts just get the money out.

Wages can be garnished once they are deposited in a banking institution.

You can probably fight the judgment in the local court but count on the fact that you will most likely lose and they will get a judgment then go for garnishmet of whatever assets they can find and legally take.

Most folks who attempt to fight in court do not have the experience to fight effectively and that is why so many judges want people to get lawyers but the problem with that is that lawyers cost too much money and usually don't have the expertise to actually fight and win.

Count on the fact that if you want to get rid of them you will have to sue them in federal court.