Garnishment Laws Due to Credit Card Debt

[dedebtor]

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.

[Mr. Knowitall]

(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?

[dedebtor]

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.

[Betty3]

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.

[Mr. Knowitall]

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.