How can they garnish wages if one doesn't have an income

**Palooka** · 01-20-2010, 09:06 AM

This is just a hypothetical question. I was thinking how bad the economy is for some and so much un-paid debt is going into collections.

I heard there is some new reality show about people that get their cars repo'd. (anyone heard of it. I want to check it out)

So what if the person doesn't get a job for another, say, three years and owes debt and collections is hounding. I mean do they wait until a person gets a job and stalks them out still?

You know you can't get blood out of a turnip but would this apply to the statues of limitations type thing?

Hope that made sense.

**Russ** · 01-20-2010, 09:22 AM

they can garnish unemployment ( I think) and any tax returns.

**Palooka** · 01-20-2010, 09:35 AM

Originally Posted by rcannon

they can garnish unemployment ( I think) and any tax returns.

Oh good point. Forgot about tax returns.

I didn't know that about unemployment though??

**Palooka** · 01-20-2010, 09:49 AM

Just did a search and I think this is this show I heard about in the hair salon. lol I need to check it out.

http://www.trutv.com/shows/operation_repo/index.html

**Parksfamily5** · 01-20-2010, 09:51 AM

Inheritance can also be garnished.

**Palooka** · 01-20-2010, 10:12 AM

Originally Posted by Parksfamily5

Inheritance can also be garnished.

Yep! But I might have some questions about that later because I'm a little confused on that subject.

**sabrelvssammy** · 01-20-2010, 10:22 AM

i do know that welfare money is 'garnishment proof'...i don't know about unemployment though...i would think it would be also...the court clerk told me once that the reason welfare cannot be garnished is because the gov't doesn't have the resourses in place to deal with that stuff (the pulling of the monies and getting it disbursed to the proper people)...

i have court this afternoon with a former tenant that we have been chasing for money for the past year and 1/2.... they have a payment plan (here called a 'voluntary assignment') that they agreed to when they were hauled into court and they never keep to...(are garnish-proof) but she was arrested yesterday because after going to court the first time (when i filed) and our agreement to the plan and her not sticking to it, the court issues a 'body-attachment' or 'bench warrant' and she gets arrested... now her $25 payment (that she missed the past 2 months) is going to cost her $1500 (the amount she owes me in full) because the full amount becomes due as the persons bond amount. If she does not come up with the money, she stays in jail until she does. The court clerk this morning told me that the judge will probably take her tax refund..."she doesn't work" i said...and the clerk replied "don't worry about that...chances are she gets a bigger return than you and I combined"...

so in essence to your question....no if the person that is entitled to the debt files against the debtor and the court gets involved there is a very good chance that one way or another the debt will get repaid... The court will require some kind of payment plan from the debtor and if they don't stick to it...warrants are issued, arrests are made, debts are paid back...

i have some warrants that are 5 yrs old where the people skip...they will be caught if their dr's lic is ever run (they get pulled over or whatever)...the warrants stay outstanding forever and do not 'drop off, expire, etc'.... the clerk once told me don't be surprised when you are 80 and sitting in the nursing home and you get a check for an old warrant... plus...the court here charges 8% interest on all monies owed...(that goes to us also)...

inheritances can be taken-- as any or all monies can that the judge decides should be included if that person owing the money ever comes into contact with such...

**Palooka** · 01-20-2010, 10:40 AM

Originally Posted by sabrelvssammy

i have court this afternoon with a former tenant that we have been chasing for money for the past year and 1/2.... they have a payment plan (here called a 'voluntary assignment') that they agreed to when they were hauled into court and they never keep to...(are garnish-proof) but she was arrested yesterday because after going to court the first time (when i filed) and our agreement to the plan and her not sticking to it, the court issues a 'body-attachment' or 'bench warrant' and she gets arrested... now her $25 payment (that she missed the past 2 months) is going to cost her $1500 (the amount she owes me in full) because the full amount becomes due as the persons bond amount. If she does not come up with the money, she stays in jail until she does. The court clerk this morning told me that the judge will probably take her tax refund..."she doesn't work" i said...and the clerk replied "don't worry about that...chances are she gets a bigger return than you and I combined"...

say what??? Since when do people go to jail for not paying debts?

**Denvergirlie** · 01-20-2010, 11:43 AM

Originally Posted by Palooka

say what??? Since when do people go to jail for not paying debts?

Happens all the time now, yes we do have a debtors prision system now. State level, not federal.

Ususally it's because the person it cited as being in contempt of court for failing to honor the judgement set against the debtor.

Also, think of "dead beat dads" that don't pay child support, this can not be wiped away by bankruptcy, and yes people get jailed for not paying those obligations.

**Incognito** · 01-20-2010, 11:50 AM

This whole issue depends on the laws of the country you live in, and the type of debt or financial obligation.
As far as I know about this in Canada, if a matter goes to court, the judge also has to take into account the reasonable living expenses of the payee or garnishee, (and that is what the lawyer will be advocating for), and then the judge issues a court order for the payment of the debt based upon a reasonable rate and time of payment.

Otherwise, how would these debts actually get paid? If a person is sent to jail, how would they ever be able to come up with the money to pay the debt? Debtor's prisons never did work well, even in the Dickensian era. It costs almost $100,000.00 to put 1 person in prison for 1 year, so it's not cost-effective, and really doesn't serve the purpose?

In establishing restitution, all monetary assets of the garnishee are taken into consideration, and sometimes the other assets of the estate.
If the garnishee is unable to pay, that would have to be determined.
That's where the bankrupcy laws would come into effect. But if a debt remains outstanding, then payment would be required if and when the debtor has the means to pay. Once there is an order for a person's monetary assets to be garnisheed, it remains in effect until changed, so any time the debtor has money, a portion of it is sent to the appropriate legal parties to be dispensed to the creditors.

**mombottoo** · 01-20-2010, 12:19 PM

The person owed can also attach the assets of the debtor...

Social Security is another resource that can't be touched by any entity other than the federal government. So, if your only income is social security a debt holder can't go in and wipe out your bank account...even with a court order...

**Palooka** · 01-20-2010, 12:22 PM

Originally Posted by Denvergirlie

Happens all the time now, yes we do have a debtors prision system now. State level, not federal.

Ususally it's because the person it cited as being in contempt of court for failing to honor the judgement set against the debtor.

Also, think of "dead beat dads" that don't pay child support, this can not be wiped away by bankruptcy, and yes people get jailed for not paying those obligations.

Oh geez! They should file bankrupt. Well how can they even start to pay the debt if they are in jail.

The child support laws are really screwed up in many states and it takes a million times over before a 'dad' is thrown in jail.

A monkey will learn to fly faster.

**Incognito** · 01-20-2010, 12:36 PM

Besides that, laws are always changing, and are different in each state and province. They may also be applied differently due to the individual mentality of the court judge.

**Palooka** · 01-20-2010, 12:41 PM

The fact is no one goes to prison for not paying a debt.

It would suck if Discover put me there with no makeup.

Yes child support can be one but that is rare and not was I was talking about.

**sabrelvssammy** · 01-20-2010, 08:44 PM

Originally Posted by Palooka

say what??? Since when do people go to jail for not paying debts?

ok here's how it works in my state of Indiana...

say you owe me money..for whatever....i go and file in small claims (if under $1500...it's different for me than if an individual files.(i'm a corporation)..anything over $1500 i have to file in circuit court and have an attorney represent me...individuals can sue for up to $5000 here....

so i have filed...and we get a court date...i show up with all my docs to argue my case...if you don't show up i get an automatic 'default judgement' (which means no matter how much i tell the court you owe me that is what you have to pay...(even if i make it up)...up to $1500... the thought on the courts part is if you don't show up to state your own case...you automatically lose...take your chances...
if you show up we try to negotiate in this little room and come up with a payment plan that you will pay me... this amount gets logged in the court records and we go our merry way...if we can't work it out we go before the judge and let him take over...

if you pay me as agreed...everything is fine...once the debt is paid off in full i notify the court and i sign a release of judgement and we are done...

if you do not pay i notify the court and you are issued what is called a 'show cause'...this is basically a hearing to show cause as to why you should not be held in contempt of court for not abiding to the agreement that you made.... we go back to court and you state your case....we come to another agreement....and go our merry ways...if you do not show up you are issued a different 'show cause' as to why you feel you didn't have to come to court either....if you do not show up to that hearing you will be arrested for ignoring the court...

after this 2nd agreement that we make if you still do not make the payments then the body attachment or bench warrant is issued...(as to which what happened this afternoon to my tenant)...

so i went to court and i could have been a real jerk and not willing to work with her...but being the 'nice' haha person that i am i worked out another agreement...geez... i agreed to take 1/2 her tax return (and we don't know how much that will be so i may have the entire debt paid off...maybe not..we are talking about $1300 here and i have been trying to collect since 1-2008)...and if not paid in full then back to monthly payments for the remainder of the balance....now the court explained to her that if she does not abide by this agreement...back in jail she goes and she can just stay there if that is what myself and the judge decides....

so all it takes is someone filing against someone else...(or a company against an individual for non-payment) and the ball is rolling....if someone files...you cannot 'walk away from a debt'...you will HAVE to go to court and make arrangements to pay the debt and if you don't keep to your agreement...you pay the consequences... at least that is how it works in my state....