What Can I Do About a Wage Garnishment for a 20-Year-Old Debt?

Question from Rick, What Can I Do About a Wage Garnishment for a 20-Year-Old Debt?

Answer from AI:

Receiving a notice of wage garnishment for a debt that is two decades old can be alarming and confusing. Here’s a general explanation of what you might do in this situation.

Understanding Wage Garnishment

Wage garnishment is a legal procedure where a portion of your earnings is withheld by your employer to pay off a debt. This typically happens after a court judgment has been made against you.

Steps to Take

If you find yourself in this situation, consider the following steps:

1. Verify the Debt: Confirm that the debt is indeed yours. Sometimes, errors can occur, and debts can be mistakenly attributed to the wrong person.
2. Check the Statute of Limitations: Each state has a statute of limitations on debt collection, which limits the time a creditor has to sue you for a debt. For example, in Kansas, the statute of limitations for written contracts is typically 5 years, and for oral contracts, it is 3 years. However, if a judgment was obtained, it can be enforced for a longer period, often up to 10 years, and can be renewed.
3. Review the Judgment: Obtain a copy of the judgment from the court that issued it. This will provide details on the debt and the legal proceedings.
4. Check for Proper Notification: Ensure that you were properly notified of the lawsuit and the judgment. If you were not, you might have grounds to contest the garnishment.
5. Consult a Legal Professional: Given the complexity of interstate debt collection and garnishment laws, it is advisable to consult with a legal professional who can provide personalized advice based on your specific circumstances.

Possible Recourse

Depending on your situation, you might have several options:

• File a Motion to Vacate the Judgment: If you were not properly served or notified of the original lawsuit, you might be able to file a motion to vacate the judgment. This would essentially ask the court to set aside the judgment due to improper service.
• Negotiate with the Creditor: Sometimes, creditors are willing to negotiate a settlement or payment plan. This could potentially reduce the amount you owe or stop the garnishment.
• Claim Exemptions: Federal and state laws provide certain exemptions that protect a portion of your wages from garnishment. You can file a claim of exemption with the court to reduce the amount being garnished.
• Bankruptcy: In some cases, filing for bankruptcy can stop wage garnishment and discharge certain debts. This is a significant step and should be considered carefully with the advice of a bankruptcy attorney.

Resources and Further Reading

For more information, you can refer to the following resources:

• Consumer Financial Protection Bureau on Wage Garnishment
• Nolo’s Guide to Wage Garnishment

When to Seek Legal Advice

Given the complexities involved, especially with interstate judgments and old debts, it is crucial to seek legal advice. A legal professional can help you understand your rights, the validity of the debt, and the best course of action. They can also assist in filing any necessary motions or claims.

Remember, this information is intended to provide a general understanding and should not be taken as specific legal advice. Always consult with a qualified attorney for advice tailored to your particular situation.