Credit cards and garnishing question

Can a credit card company garnish anything if you are still making payments? Obviously this relates to payments smaller than what is asked for.

Mom has been afraid of garnishment if she doesn't pay the full payments. The payments had become ridiculous, plus things like interest rate increases. The bills have been above what my parents can pay with their current income.

I'm thinking maybe they can't garnish as long as you are still making payments.

If you have a reference to go by, that would help.

Thanks,

Troy

Your wages can't be garnished without a court order and that would be a last resort for the credit card company. Eventually it could happen while they were still making payments but that wouldn't happen for a while and that would be after the credit card company decided the debt was unrecoverable through any other means.

It would be better for your parents to try and talk to the crditor and try to work out some kind of arrangement because that debt is only going to grow and become more unmanageable if they can't meet the minumum payment.

Im afraid they can and will garnish your moms wages, depending on which state you reside in and the specific laws that apply.


I would urge your mother instead to call her creditor and speak to someone in what is known as the All Stage or Credit Services department. These are specific areas of the collections unit who have the ability to reduce your moms required payments and put her on a payment schedule that she can afford.

As long as she adheres to what is agreed upon then they wouldnt take further action. But yes, they can and in a lot of instances will levy your wages. She should try making a set arrangement with the company, which they will almost always agree to (because they want their money).

If she cant make any payment then she may consider speaking with or retaining a bankruptcy attorney. In which case they can often stop existing wage garnishment while preparing to file for a chapter 7 or 13.

Tell her to work within the company first. If all else fails, she should seek bankruptcy protection as wage garnishment can get ugly.

Thanks guys.

A lot of her cards were turned over to a company called GHS, that is supposed to work with her creditors. I hope they are legit.

Me, personally, the creditors would get what I could give them. I wouldn't starve myself just to pay off an over-inflated bill.

I'm working toward a great financial future, so, at that point, I can just end all this credit debt crap once and for all for me and them. Then, shred the cards, and tell the credit card companies where they can go.

Troy