Expert: Creditwrench - 6/6/2008

Question
QUESTION: I live in Oregon and just received a Writ of Garnishment in the mail for an old car debt that I cosigned for, it was w/ Ford Motor Credit. There was a judgement in March 1999. The original balance was $11,506 and now they are coming after me for $40,100. They cannot go after the buyer because he does not have a job. Do I have any options at this point, I am a single mother of 2 and just started a good job and am starting to work up my credit history. At this point I feel that bankruptcy is not an option I want to do.

ANSWER: Bankruptcy is almost never something anyone should want to do. That judgment is good for 10 years in Oregon so you won't be able to use a statute of limitations argument to help you out.

The only salvation you might have is to remember at all times that even in garnishment the Fair Debt Collection Practices Act still applies.

That means that in order to put a stop to their collection efforts you will need to be watchful for violations and take them to federal court if they fail to abide by the law every step of the way.

But they can garnish up to 25 of your disposable weekly income that is above federal garnishment standards.

You will have to be very careful about your dealings with banks because if you allow your paycheck to be electronically deposited they can put a freeze on your bank account on top of it all and that would be painful indeed so you need to demand that your employer pay you by paper check. You need to get any money out of any bank accounts you might have but don't close the account completely.

You are in for a pretty rough time of it and for a long time to come unless you can find some violations to take them to federal court over.

Bill Bauer
405-684-9297
405-227-9423

RECOMMENDED READING:
www.creditwrench.com/howjudgmentswork.html
www.creditwrench.com/18questions.html
www.creditwrench.com/Howtodefeatdebtcollectors

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If you live within driving distance of Oklahoma City you can also come to our monthly meeting of the Oklahoma City Chapter of Jurisdictionary meetings. They are held on the 2nd Thursday of each month at Coit's Root Beer Stand which is located on the corner of SW 24th & Western Ave in Oklahoma City. The meetings start promptly at 7:00 P.M. and last for 2 hours. Attendees usually arrive about half an hour early so they can enjoy a good meal at Coit's Root Beer Stand. The meetings are free and open to the public and we can discuss your problems as well if you like.

We are going to start holding mock trials so that you can learn some court room procedures.

---------- FOLLOW-UP ----------

QUESTION: If I do file bankruptcy, can I still keep my credit cards? If so, is that a good idea? Like I had mentioned before, I just started building my credit the last 3 or 4 yrs. I curently owe about $10,000 in cards, but plan on moving in w/someone so that I can pay them off.

Answer
Whether or not you can keep your credit cards is doubtful. While I don't have expertise in the bankruptcy area I once had a friend (now deceased) who filed BK several years ago and they made him cut up all his credit cards.

So I tend to think you would not be allowed to keep them but certainly not more than one.

But why would you even consider Bankruptcy? If you do a bit of study you should be able to catch them in violations of law and nail them for it in federal court.

Doing so puts a huge hitch in their git-along real quick.