Be Intentional About Life
Collection
Posted on behalf of Archie...
This is concerning a couple with doctor bills, and of course a collection agency lurking in the background like a vulture looking for prey!
They have bills of just over $5000 pending. $1000 of these have already been to general sessions court and had a judgment taken against them.
If this couple can adjust their budget to be able to pay their everyday living expenses, but the collection agency says they WILL pay some every month or 25% of their wages will be garnished, then how will they even keep their 4 walls funded? This would totally throw their budget in a tail spin!
I have coached folks before, but believe it or not, have not run into this problem. I've been lucky I guess.
I wanted to post this question where everyone could see/learn from your expertise.
Thanks,
Archie
This is concerning a couple with doctor bills, and of course a collection agency lurking in the background like a vulture looking for prey!
They have bills of just over $5000 pending. $1000 of these have already been to general sessions court and had a judgment taken against them.
If this couple can adjust their budget to be able to pay their everyday living expenses, but the collection agency says they WILL pay some every month or 25% of their wages will be garnished, then how will they even keep their 4 walls funded? This would totally throw their budget in a tail spin!
I have coached folks before, but believe it or not, have not run into this problem. I've been lucky I guess.
I wanted to post this question where everyone could see/learn from your expertise.
Thanks,
Archie
Views: 2
Replies to This Discussion
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Permalink Reply by Justin Lukasavige on -
Has the court said that 25% of the wages will be garnished Archie? If there is a judgment already in effect then the court will decide the garnishment amount, not the collection agencies.
It sounds like this couple may be older. Can they increase their income to cover this and pay off the debt?
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Permalink Reply by Archie Winningham on -
Really? How will the court know what % to tell them to pay? They didn't show up for the hearing, thus the judge hasn't seen a monthly cash flow plan etc. Do they just need to go back and talk to the judge/general sessions personal about this, and totally bypass the collectors? I really, after seeing their expenses, don't think they can afford to pay anything at this point.
Also, are the laws about the same in TN as NC?
Thanks,
Archie
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Permalink Reply by Justin Lukasavige on
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I think they pull from tax records, etc. Archie. I'm not 100% positive because I've never worked with someone that didn't show up to the hearing.
When it comes down to it though, only the court will determine how much your client will repay when enacting a judgment. The creditors may be able to influence the court though.
I'm not sure the laws in TN, but in NC, the only debts that can put a garnishment on wages are taxes and student loans. Credit cards and payday loans can't do anything except sue and put a lien on property.
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Permalink Reply by Archie Winningham on
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I/we sure appreciate the info Justin. We'll just go from there and see how it turns out.
I'll keep you posted on how it turns out.
I'm curious, how many hearings have you had to attend with clients? I haven't had to do that for anyone yet and just wonder what to expect when the time comes?
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Permalink Reply by Justin Lukasavige on
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I haven't attended any hearing Archie. I try to get my clients not to get to that point. With what I mentioned about the law in NC, it's pretty rare that someone actually gets sued. Those that have usually come to me after the fact.
Hope you're having a great New Years!
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