Disclaimer: This post is not meant to serve as legal advice. In fact, it is not legal advice. If you have a legal problem, you should consult an attorney licensed to practice in your state.
Michigan has seen better days. We make automobiles, but we're having trouble selling them. That means there are more cars on the lots, and fewer jobs in the market. Creditors are prowling about, looking for tender, juicy Michiganders (or Michiganians, if you prefer) to devour.
All jokes aside, being hounded by creditors can be an incredibly painful experience. If you owe a debt, you should pay it if possible. You can rest assured that if your creditor is a corporation, they have every intention of getting their money back. The creditor will file suit against you, and if the debt is valid, they will almost certainly prevail. After a judgment is issued against you, the creditor will attempt to collect. Garnishment is an effective collection tool; in most instances, one must have a court order allowing the garnishment. Some creditors (e.g. the IRS) do not require a court order to garnish.
Sometimes it is not possible to repay valid debts. This is particularly true of disabled people on fixed incomes. If you or someone you know is a recipient of Social Security benefits or Supplemental Security Income (SSI), you should know that this money is exempt from garnishment. I often speak with disabled people who have no idea that, for the most part, this money cannot be garnished. There are exceptions that I will explain below.
A disabled person who has one of the above as their sole source of income cannot be garnished under normal circumstances. An exception to this rule arises if other monies are mixed with the income that is exempt. For example, if I receive SSI money via direct deposit, and it is my only source of income, a creditor *usually* will not be able to get it. However, if a friend or relation gives me a financial gift (let's say $20), and I deposit that money into my bank account, the bank account becomes open to garnishment. Sometimes "mistakes" happen, and creditors successfully attempt to garnish funds that are exempt. If this happens, you must file an objection with the court within 14 days. The onus is on the debtor (i.e. you) to file an objection.
If your sole source of income is exempt from garnishment, you don't own a home, don't have any savings, and you are sure that you'll never work again, you can laugh at creditors who threaten to sue you. But don't laugh so hard that you forget to check your mail for garnishment notices. "Mistakes" do happen, and not every creditor is willing to abide by the law. If you don't have any money, any assets, and you think that you probably never will, you probably don't need to declare bankruptcy.
It goes without saying that you can negotiate with creditors. But never, ever agree to a payment plan that you cannot afford. That'll just make creditors angry, and you'll feel worse about the situation.
Michigan has seen better days. We make automobiles, but we're having trouble selling them. That means there are more cars on the lots, and fewer jobs in the market. Creditors are prowling about, looking for tender, juicy Michiganders (or Michiganians, if you prefer) to devour.
All jokes aside, being hounded by creditors can be an incredibly painful experience. If you owe a debt, you should pay it if possible. You can rest assured that if your creditor is a corporation, they have every intention of getting their money back. The creditor will file suit against you, and if the debt is valid, they will almost certainly prevail. After a judgment is issued against you, the creditor will attempt to collect. Garnishment is an effective collection tool; in most instances, one must have a court order allowing the garnishment. Some creditors (e.g. the IRS) do not require a court order to garnish.
Sometimes it is not possible to repay valid debts. This is particularly true of disabled people on fixed incomes. If you or someone you know is a recipient of Social Security benefits or Supplemental Security Income (SSI), you should know that this money is exempt from garnishment. I often speak with disabled people who have no idea that, for the most part, this money cannot be garnished. There are exceptions that I will explain below.
A disabled person who has one of the above as their sole source of income cannot be garnished under normal circumstances. An exception to this rule arises if other monies are mixed with the income that is exempt. For example, if I receive SSI money via direct deposit, and it is my only source of income, a creditor *usually* will not be able to get it. However, if a friend or relation gives me a financial gift (let's say $20), and I deposit that money into my bank account, the bank account becomes open to garnishment. Sometimes "mistakes" happen, and creditors successfully attempt to garnish funds that are exempt. If this happens, you must file an objection with the court within 14 days. The onus is on the debtor (i.e. you) to file an objection.
If your sole source of income is exempt from garnishment, you don't own a home, don't have any savings, and you are sure that you'll never work again, you can laugh at creditors who threaten to sue you. But don't laugh so hard that you forget to check your mail for garnishment notices. "Mistakes" do happen, and not every creditor is willing to abide by the law. If you don't have any money, any assets, and you think that you probably never will, you probably don't need to declare bankruptcy.
It goes without saying that you can negotiate with creditors. But never, ever agree to a payment plan that you cannot afford. That'll just make creditors angry, and you'll feel worse about the situation.
posted by Wordsmyth at
9:36 PM
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