Can a creditor garnish your wages in the state of California?

Question

My fiance and I just got done going thru a forclosure. We tried our hardest to keep the house, but in the end was not able to. In the process we aquireded quit a few debts. We've been paying off the smallest creditors first and working our way up to the larger ones, but now Chevron has sold the debt to GE Money Bank and they sent a letter of intent to sue. They are not willing to take payments for the $1,600 we owe even though we've tried offering. They want over 300 a month which we have no possible way of paying. They are now saying that after the suit they will garnish my wages. We are in a panic because we are trying our hardest to get out of debt and trying to do the responsible thing and make small payments, but if they garnish my wages, we can't pay rent, gas to go to work, car payments, medical payments, etc. Can they really garnish my wages over originally credit card debt? Who can I contact about this if they can't? Any suggestions, idea? Please, it would be way appreciated. Thank you and God Bless!

Answer 1

California uses federal guidlines for wage garnishment.  Up to 25% of the debtor's net disposable earnings. Once the levy has been served on the employer by the sheriff or marshal, it remains in effect until the judgment has been paid in full. Because California is a community property state, the wages of a non-judgment debtor spouse are also subject to levy.

Your only chance is to show in court that your are considered judgment proof. You may be considered "Judgment Proof" during periods of unemployment or while drawing disability pay or disability retired pay. Also, if you have no assets such as home, car, land, and other big-ticket items. In other words, you have no money and can prove it!

Never ignore a lawsuit just because you are broke or have no assets! If a debt collector or creditor is trying to sue and you believe that you are judgment proof, you must respond to the lawsuit as such. Failure to appear and show the judge why you are judgment proof opens the door for the judge to grant the collector a "default judgment".

Even though they cannot collect anything from you now, they can wait many years and try again. Also, the judgment will show up on your credit report.

Special Note: Judgment-proof is the commonly used term but a more accurate term would be "execution-proof"! Although creditors and debt collectors win lawsuits, they still have to collect thus, if you are penniless you are insulated not from judgment but from execution (collection of the debt - at least temporarily).

You might consider seeking legal help and filing for bankruptcy.  This will keep collectors away and give you some breathing room.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

They can if they get a judgment in court but you can tell them you are going to file a chapter 7 and that will hold them off a while.