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  1. #1
    Join Date
    Jun 2010
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    2

    Default Wages Garnishment and Possible Garnishment of Bank Accounts

    I was served summons on early 2009 by a collection law firm in Minnesota for amount of $2991. ANd judgement was entered on April of 2009. I was jobless at that time but still I tried to negotiate and couldn't get to agreement. I just started working and make descent money and saving some amount. But last week my employer sent me wages garnishment order of $3331. 25% of disposable income ($322.35 amount biweekly) has already been deducted from my last pay check .

    I was worried. So, I called that collection law firm to see if they give me some option and also asked them if they have any other accounts of mine. Initially they said they got nothing besides that garnishment but later when they entered my social they said that they have one other account of mine for $12300 amount which they bought from another collection agency and the one more account they already sold it to third party. They said they can do nothing about garnishment but they can do settlement on $12300. They even called me at my work one day and tried to negotiate about it but I told them if they can send me any proofs that says they actually have my another account and I will process whatever payment plans they offer.

    But they are saying me its too late for that and since they already sent me documents about a year back ( which I never received) they will goahead and start the process further (garnishment).

    So, My concern now is what should I do after I am done paying my garnishment? will they stop taking my money away from my paycheck after garnishment order has been fulfilled or not? or do I have to contact somebody? Besides that will they be able to do garnishment with my other account too without providing any documentation . Do I need a lawyer for this? Thank you in advance for your valuable consulation.

  2. #2
    Join Date
    Mar 2008
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    1,995

    Default Re: Wages Garnishment and Another Account Summon Threat

    Quote Quoting isql
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    So, My concern now is what should I do after I am done paying my garnishment? will they stop taking my money away from my paycheck after garnishment order has been fulfilled or not? or do I have to contact somebody? Besides that will they be able to do garnishment with my other account too without providing any documentation . Do I need a lawyer for this? Thank you in advance for your valuable consulation.
    I do the payrolls for my company, and generally:

    - When I get a writ of garnishment, I start garnishing, and here in NY State, the max is 10% unless for child support, and I keep track of the deductions, and do not deduct beyond the amount on the writ. Where I am, I stop it when the total amount is deducted.

    - The marshalls to whom the payments are sent would also notify us about 30 days before the final payment reminding us that there are only so much more to go.

    - Once we finish one garnishment, then we would go on to the next if there is more than one, as only one garnishment can be done at one time here in NY State.

    - The people that I garnish from time to time ask for a printout of the amounts garnished. I suggest you keep a spreadsheet, and if you are not handy doing spreadsheets to keep a hand written list of deductions so you will also have your own records. I told one guy to keep all his paystubs with the garnishments in a jar, if he is worried I might over deduct.

  3. #3
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Wages Garnishment and Another Account Summon Threat

    OP, you say that the collections company is in Minnesota.

    Do YOU work in Minnesota? Wage garnishment laws can be different by state.

  4. #4
    Join Date
    Jun 2010
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    2

    Default Re: Wages Garnishment and Another Account Summon Threat

    Quote Quoting PattyPA
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    OP, you say that the collections company is in Minnesota.

    Do YOU work in Minnesota? Wage garnishment laws can be different by state.
    Yes I work and stay in Minnesota and the collection attorney firm is also in Minnesota.

    Quote Quoting SChinFChin
    View Post
    I do the payrolls for my company, and generally:

    - When I get a writ of garnishment, I start garnishing, and here in NY State, the max is 10% unless for child support, and I keep track of the deductions, and do not deduct beyond the amount on the writ. Where I am, I stop it when the total amount is deducted.

    - The marshalls to whom the payments are sent would also notify us about 30 days before the final payment reminding us that there are only so much more to go.

    - Once we finish one garnishment, then we would go on to the next if there is more than one, as only one garnishment can be done at one time here in NY State.

    - The people that I garnish from time to time ask for a printout of the amounts garnished. I suggest you keep a spreadsheet, and if you are not handy doing spreadsheets to keep a hand written list of deductions so you will also have your own records. I told one guy to keep all his paystubs with the garnishments in a jar, if he is worried I might over deduct.
    Thank you SChinFChin for your valuable information. Yes I am keeping record of garnishment.

    I am more concerned now about other account too would they be lying saying they dont need to provide me any proof that they have anohter account of mine (Which I never got any mails regarding other account). And They are saying they will goahead and start summon or garnishment whatever. What should I do ? should I get hold of lawyer ? or ? according to them I owe about $12300 on that account.

  5. #5
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Wages Garnishment and Possible Garnishment of Bank Accounts

    From the American Payroll Association's Guide to State Payroll Laws:

    May not exceed lesser of: (1) 25% of disposable
    earnings or (2) amount by which disposable
    earnings exceed the following product:
    40 times the federal minimum hourly wage
    ($5.15), times the number of work weeks in
    the pay period. When a pay period consists
    of other than a whole number of work weeks,
    each day of that pay period in excess of the
    number of completed work weeks will be
    counted as a fraction of a work week equal
    to the number of excess workdays divided by
    the number of days in the normal work week.
    The applicable statutes:
    https://www.revisor.mn.gov/statutes/?id=571.922
    and
    https://www.revisor.mn.gov/statutes/?id=571.923

  6. #6
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Wages Garnishment and Another Account Summon Threat

    Quote Quoting isql
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    I am more concerned now about other account too would they be lying saying they dont need to provide me any proof that they have anohter account of mine (Which I never got any mails regarding other account). And They are saying they will goahead and start summon or garnishment whatever. What should I do ? should I get hold of lawyer ? or ? according to them I owe about $12300 on that account.
    I am unclear from your post as to whether the collection agency just bought the debt where they have to go further and get a judgment, or whether what they bought is a judgment where they can just proceed and obtain a "writ of garnishment".

    If there hasn't been a judgment, then you are legally entitled to ask for "proof of debt" from them. I read recently in my local paper, the New York Times, about cases where people had gone to fight the collectors who bought debt, ask for proof, and most collectors are simply unable to provide them in court, and had the cases thrown out. Usually one collector buys the paper from the creditor, then sells it to another, then another, and before long, they have no idea what they bought.

    On the other hand, if it's a default judgement, you knew nothing about it, then you'll probably have to get an attorney to straighten out. The same article pointed to the failure of the collection agencies providing "proper service".

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