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Collections Law/Wage Garnishments
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Question
I was contaced by a collection agency about a debt. They are threating to take 35%of my wages for payment. I've offered a monthly payment plan but they are insisting before I do that, they want a 20% downpayment. I've explained to them I am a single parent and my check just about covers rent and food for my son. How much are they legally allowed to take? And does it make a difference that I am a single parent not getting child support? And do they have to bring me to court before they begin wage garnishment? I live in the state of New Jersey just to let you know.
First, they must file a suit and obtain a judgment before they can attach wages. You may fight the case and/or dispute the amount of the debt. Second, it depends on your state whether they can even garnishee your check. In addition, your state may not allow garnishment or exempts a portion of your check from garnishment. Federal law only allows 25 of your gross after exempting 30 times minimum wage from that calculation.
Below is the garnishment law for NJ:
WAGE GARNISHMENT EXEMPTION: Garnishment may not exceed 10 of gross salary. Monies may not be withheld if disposable weekly earnings are less than $154.50 per week or $309.00.00 every 2 weeks
MAXIMUM INTEREST RATE: Legal: 6 Judgment: None specified
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit card): 6 years
Written Contract: 6 years
Domestic Judgment: 20 years
Foreign Judgment: 20 years
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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