Wage Garnishment As Effective Collection Tool: Attorney Expresses Contrary Opinion
There was a recent post about a conversation with a debt collection attorney concerning what he believed were, and were not, effective collection tools. I reported that this collection attorney did not find wage garnishment to be a good collection tool because wage garnishment often drove debtors into bankruptcy.
I received different opinion from another experienced collection attorney from the Tampa area who writes:
"I couldn’t disagree more with whomever disparaged wage garnishments. They are my number one collection tool in this economy. With jobs scarce, people cannot afford to quit and seek new employment which they would have done prior to the recession. I can usually stipulate most every contested wage garnishment or win evidentiary hearings on the head of household issue due to the difficulty in actually proving it. Furthermore, it is far easier to verify employment(thus ensuring a "hit") verses a bank account which is hit or miss. I have no found bankruptcy to be an issue at all."
This attorney's opinion is consistent with my own experiences in bankruptcy practice. I have a few bankruptcy clients who say they are filing bankruptcy because their wages have been garnished, but I don’t find that wage garnishment is a primary cause of bankruptcy. Most bankruptcy debtors I deal with anticipate collection. In other words, most people file bankruptcy before a creditor gets a judgment which would subject their wages to garnishment. If a creditor attorney garnishes wages then in most cases the debtor cannot file Chapter 7 bankruptcy for one reason or another.
I am employed at the Reno Sam's Club. My wife and I were recently divorced (10/01). My wife battled breast cancer last year and ran up some large debts. She is covered by Medicare, since I cannot afford to put her on my insurance. Nevada is a community property state, and my pay was recently garnished to pay two of her medical debts about $1100.00). I never heard from her creditors, no letters or phone calls, but my ex-wife was served with papers announcing a court appointment for garnishment. I may have been served papers later, but I cannot remember it well. Was it legal for them to pursue garnishment without communicating with me to arrange payment? I have writtent o them twice, but they refuse to respond. Thank you.
We had some hard times . Had Garnish our pay check even after we had file the garnishment exemption by the law, They have take 20% off the check in two different hospital bills,We have found out that in Wi Attorneys "Big Firms " control workers and maybe Judges decisions on civil matters. What is the purpuse to have law money rules , people hurting get no help , is wrong I am under the law in poverty and they still take your money??? we file in court the work sheet this time and last they still took the 20% What happen to our legal system