Expert: Regan Shinski - 2/2/2011

Question
I have been doing so much research lately but not really getting any good information.

I got contacted by a collection agency who merged with another one that won two judgments on me some time ago.  The first judgment was for around $532 in 2006.  The second was for $711 in 2008.  These judgments were done in Colorado and the first judgment was collected on and paid off via wage garnishment.  I have not worked since because of children.  The second one for $711 is still unpaid. I verified this after looking up my court records for colorado.

The agency that contacted me said I owed them over $1000 - I did not get the actually amount written down because I asked him to send me what he had on file so I can review it which he is doing for me.  

a) Can they collect more than what the judgment was for? b) can they collect on a judgment that was already satisfied (in case he was combining the two to come up with the $1K figure) c) can they garnish my husband's wages even though we now live in Oregon? (He did say they would have to go that route if I didn't work with them) and d) is there is restriction on garnishment for a family of five surviving on 30K a year and receiving government assistance?

I hope this makes sense.  I am not sure really how to put it.

Thank you

Kristen

Answer
Hi Kristen:

You asked several questions if they can "collect" on amounts outside the judgement amounts.  They can "collect" on anything but they lose the enforcement power on the judgement once it has been paid or vacated.  The collect by making calls, reporting to the credit bureaus,sending letters, and even going after another - or altered - judgement.  They cannot garnish more than the judgement amount.  However, you have to stay on your toes.  You should contact the court to get the status changed to "satisfied".  You will have to show proof.  Once that judgement is updated to satisfied, take the extra step and bring it to the employer to make sure nothing else is taken out.  In theory, they can keep using the power of the judgement to collect a debt as long as that court document is not updated, so following through with this is your only safe move.

Oregon has adopted the Uniform Enforcement of Foreign Judgments Act which, in general, gives them the right to collect on your assets in Oregon.  There may be minor administrative hurdles they have to take on but it is not difficult and they can enforce a legal Colorado judgement on you in Oregon.

They can take your husband's wages if he is tied to the judgement.  Additionally, joint accounts can be taken, joint property may be at risk.

In general, they can take 25% of disposable wages or 40x the federal minimum wage - whichever is greater.  In some cases, there are exceptions to when dealing with a disability.  I would suggest contacting a local or state advocacy/governmental body for the latest state laws and rulings.

I think that answers all your specific questions and I hope this helps.  I wish I had better and more simple news for you but these are complicated legal dealings.  

Regan

REMOVE JUDGMENTS FROM CREDIT REPORTS - www.ficofighter.com