I live in ny state- can a collection agency file a judgment against me?

Question

after being furloughed from his job my husband was not able to make payments on his credit card-though the company tried to work w/him,(since he was a member for 20 yrs) they eventually turned it over to a collection agency - what steps can the collection agency take as far as judgments or wage garnishing as he is back to work but still catching up

Answer 1

Yes garnishment is an option for them.  They would have to forward the matter to a legal firm for further action.  Your husband should make any payment he can on the bill.  That should prevent legal action.

Always remember there are no quick fixes.  There is a catch to every scheme.  Please be careful.

Answer 2

In short, anyone can sue anyone for anything at any time.

Most creditors won't bother to sue for anything less than $1,000 and on anything over $2,500 it's almost guaranteed you'll get sued.  The $1,000-$2,500 range is iffy, but I certainly wouldn't take any chances.

In order to garnish, they have to have a judgment.  In order to get a judgment, they have to file a law suit.  When they file suit, you have to be properly served for the suit to go forward.  When you get served, you MUST file an answer, or they will get a default judgment and then they get the garnishment order and getting this reversed is nearly impossible.

Answer 3

This would all depend upon whether or not the debt is within your states statute of limitations which is 6 years.  If the debt is beyond the SOL, then NO they can not take legal action.

New York law as to wage garnishment is as follows

WAGE GARNISHMENT EXEMPTION:  Ten percent (10%) of gross income, or the  federal maximum, whichever is less

What it boils down to is that even if they do get a writ of garnishment, the weekly deductions would be small anyways depending upon your husbands pay.

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.