Results 1 to 5 of 5
  1. #1
    Join Date
    Dec 2010
    Posts
    3

    Default Garnishment Laws Due to Credit Card Debt

    I may have two cards charge off very soon. I am doing research on the next steps to pay this debt if it goes to collections through an collections agency or attorney.

    I am self employed in Delaware and keep my money in Delaware bank accounts. From what I understand as self employed I can not have my wages garnished, nor my bank account. I want to know if I am correct. Here is some research, I found two sites that talk about this, then found the DE codes.

    Info:

    http://www.debt-collector-problems.c...ebt-Guide.html
    http://www.fair-debt-collection.com/...shments.html#8

    Laws:

    Exempt property.
    http://delcode.delaware.gov/title10/...dex.shtml#4902
    Exemption and attachment of wages.
    http://delcode.delaware.gov/title10/...dex.shtml#4913
    Corporations subject to attachment and garnishment. (I think this is a famous one)
    http://delcode.delaware.gov/title10/...dex.shtml#3502

    I want to use these laws as leverage when I am pursued. Is this in my favor? At the end I know a court order to pay is just that, but seems I have some tools here.

    Thanks.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Garnishment Laws Due to Credit Card Debt

    Quote Quoting Delaware Code 4913. Exemption and attachment of wages.
    (a) Eighty-five percent of the amount of the wages for labor or service of any person residing within the State shall be exempt from mesne attachment process and execution attachment process under the laws of this State; but such limitation shall be inapplicable to process issued for the collection of a fine or costs or taxes due and owing the State.

    (b) On any amount of wages due, only 1 attachment may be made. Any creditor causing such attachment to be made shall have the benefit of priority until the judgment with costs for which the attachment was made has been paid in full.

    (c) Wages shall include salaries, commissions and every other form of remuneration paid to an employee by an employer for labor or services, but shall not include payment made for services rendered by a person who is self-employed.
    I would interpret that language as meaning that if you're self-employed a creditor cannot seek to garnish your compensation from your clients. If you are an incorporated entity employing yourself, you would be paying yourself wages that can be garnished - you and the incorporated entity are separate legal individuals.

    I see the claim on one of your sites that 'bank accounts cannot be garnished', but I don't see a statute to that effect (save for certain types of accounts, such as retirement accounts), and I do see at least one statute that suggests otherwise ( 3505, limiting attachment of bank accounts in bad check cases if the bank doesn't have sufficient funds to cover the attachment or if the attachment will leave insufficient funds to cover other outstanding obligations.) What statute are you looking at?

  3. #3
    Join Date
    Dec 2010
    Posts
    3

    Default Re: Garnishment Laws Due to Credit Card Debt

    Sorry if this posts twice, but my reply seems to have not posted or maybe I did something wrong a few days ago.

    I am not incorporated, I am self employed as a design freelancer, sole proprietor.

    The statute I was refering to is, http://delcode.delaware.gov/title10/...dex.shtml#3502 part b.

    "(b) Banks, trust companies, savings institutions and loan associations, except only as to a wage attachment against the wages of an employee of the bank, trust company, savings institution or loan association, shall not be subject to the operations of the attachment laws of this State." I believe this is why many sites and other forums discussions mention DE bank accounts can not be garnished.

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Garnishment Laws Due to Credit Card Debt

    Quote Quoting dedebtor
    View Post
    Sorry if this posts twice, but my reply seems to have not posted or maybe I did something wrong a few days ago.

    I am not incorporated, I am self employed as a design freelancer, sole proprietor.

    The statute I was refering to is, http://delcode.delaware.gov/title10/...dex.shtml#3502 part b.

    "(b) Banks, trust companies, savings institutions and loan associations, except only as to a wage attachment against the wages of an employee of the bank, trust company, savings institution or loan association, shall not be subject to the operations of the attachment laws of this State." I believe this is why many sites and other forums discussions mention DE bank accounts can not be garnished.
    What they are saying there is that banks, trust cos., savings inst., & loan assoc. themselves are not subject to attachments.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Garnishment Laws Due to Credit Card Debt

    According to this, there is a broad immunity to garnishment of Delaware bank accounts but a creditor may potentially pursue a remedy of "sequestration" against a bank account.

    1. Sponsored Links
       

Similar Threads

  1. Debt Collectors: Difference Between Credit Card Debt and Amount Claimed in Garnishment Order
    By Musicbaby01 in forum Debts and Collections
    Replies: 2
    Last Post: 02-22-2011, 02:10 PM
  2. Debt Collectors: Credit Card Debt and Possible Garnishment of Bank Account
    By emmalis in forum Debts and Collections
    Replies: 1
    Last Post: 12-03-2009, 08:01 AM
  3. Debt Collectors: Credit Card Garnishment
    By kathyp in forum Debts and Collections
    Replies: 1
    Last Post: 03-06-2009, 01:42 AM
  4. Debt Collectors: Georgia Credit Card Debt, Wage Garnishment and Bankruptcy
    By littletaters in forum Debts and Collections
    Replies: 10
    Last Post: 09-19-2007, 12:11 PM
  5. Debt Collectors: Bank Account Frozen by Credit Card Garnishment
    By bobolong in forum Debts and Collections
    Replies: 3
    Last Post: 01-13-2007, 11:41 AM
 
 
Sponsored Links

Legal Help, Information and Resources