Can a Collection Agency Garnish my Wages?
A collection agency may not garnish your wages without following the bounds of due process.
From what my clients have told me, this threat occurs with great frequency. The typical scenario is that the individual has defaulted on a credit account. The original creditor, be it Citibank or Capital One or whomever, fails in its attempts to get the defaulting individual to pay. The individual’s debt is now referred to as “bad debt”. Many times, the original creditor will simply give up and sell the “bad debt” to an outside company, such as a collection agency, for pennies on the dollar, sometimes even less.
How To Create A Creditor Debt Management Program
A creditor debt management program provides relief to a concern for most professionals, small business owners and others potentially susceptible to personal liability during their lifetime or after death. A creditor debt management program can’t guarantee that a particular savings or income producing account will or will not be protected from creditors. as every situation depends on a number of circumstances, a creditor debt management program will protect you in many instances but not in others.
It is important and a responsibility to do all you can to try and mitigate risk as best you can using a creditor debt management program.