garnishment

Submitted by Anonymous (not verified) on Thu, 05/20/2010 - 21:16
Forums

Hello, I understand that creditors obtaining a judgement will go after a wage garnishment a bank account or other assets, what if I am in indepenmdent contractor or self employed? I live in california, so the laws on garnighment are the federal guidelines, but I only see about wage garnishment which is an emplyer emplyee relationshsip, but what about an independent contractor or self employed that is an employer employer relatinship so to speak. Can that be garnished? To this date no creditor has a judgement against me, but I dont know how long I can hold them off.

DonPC (not verified)

I should add that this is unsecured credit card debt only, no taxes or spousal/child support or anything like that. I know thay can go after assets, but I don't understand whetehr they can go after income if it is self employed or independent contractor.

Thu, 05/20/2010 - 23:24 Permalink

Hi DonPC,

A creditor or collection agency will not be able to garnish your wage, as you are self employed. However, your bank account can be garnished. Whenever any money gets credited on your account, it will get withdrawn by the bank. They will then deposit it with the creditor. This process can continue till the outstanding debt amount gets paid off.

Thanks,

Aaron

Fri, 05/21/2010 - 07:56 Permalink
DonPC (not verified)

Thanks Aaron, I can cash the checks very cheaplyu at the check cashing place next door, and not put it n the bank, and ge free money orders too, so I guess that would be ok

Fri, 05/21/2010 - 19:58 Permalink

Hi DonPC,

You can try to settle the debts, as debt settlement lowers the outstanding debt amount. As the outstanding debt amount gets lowered, it becomes much easier to pay off the debt. Through settlement the debt amount decreases at least by 40-60%. If the creditor or collection agency agrees to the settlement, you should get the agreement in writing. However, can you provide more details on your credit and debt?

Thanks,

Aaron

Tue, 05/25/2010 - 11:06 Permalink