Legal Question about Creditors, Courts, and My Rights?

Question

Hi,

I've been paying $500/month to a creditor for the past 8 months. Because I am a graduate student who works as a teaching assistant, I dont make much money at all (1200/month to be exact), but I have been living pretty frugally trying to pay off this debt. I notified my creditor in June that I would not be able to make my June and July payments until August because I do not have a steady income for the summer, but I will pay $1500 in August to make up for the skipped months (Im going to have to use student loan money). Well, what this creditor is done is take $400 of the $500 I had in my bank account- somehow they got a court order to do this..... This seems so unethical to me! Can anyone tell me what my rights are and/or if there is someone I can speak to at the court house (etc) who will help me make of this and set it right (set up a reasonable payment plan)? Like I said, I'm doing my best to pay off this debt and was willing to make up for the two missed payments as soon as possible. I feel like the creditor is bullying me... and if they're hands are now in my bank account, I'm not sure if I should keep anything in there. I have rent and other bills to pay and I dont want them helping themselves to the funds I need to survive! Any advise would be most appreciated.

Answer 1

The creditor got a judgment from the courts to garnish your assets. This should not have been done without your knowledge of the court proceedings.

Your best bet is to find your local legal aid or pro bono program.  Either one will usually allow you a free consultation with the appropriate type of lawyer.  Then, if appropriate, will represent you on a ability to pay basis.  You can find legal aid or pro bono in the yellow pages-attorneys section or call the clerk of the court office and ask.

For now keep your assets out of the bank.  Get paid by check, no direct deposit, and/or get a cash based job.  It might help to call the creditor and discuss the issues but this creditor sounds too predatory.

Best of luck.