Posted on 02 July 2010
Tags: court orders, credit card defaulters, credit card judgment, credit card legal orders, debtors issued court orders
When debtors fail to pay back their credit dues, despite all tried and tested ways, credit companies take the debtor to court. The legal action taken against the customer is called “judgment” and that could include taking away the wages or particular assets of the customer to have the loans repaid back.
The standard interest rate varies from 5% up to 20% and postjudgment interest is not combined until the judgment is renewed. If a judgment is renewed, then whatever interest that was on the previous judgment it would be added to the current judgment. When this statement is passed, interest amount is paid off first rather than the principal amount, and so this becomes a sticky situation for most people.
A judgment term may be imposed on for ten years and also renewed for another ten years.There are many ways through which a creditor can garnish back the payments from the debtor. One of the traditional ways to fulfill a judgment is to take off money from a debtor’s finance if he happens to sell off a real estate property.
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Posted on 22 December 2009
Tags: court orders, how to avoid writ of wage garnishment, judgement, paycheck, settelments, sue by creditor, wage garnishment, writ, writ of wage garnishment
A writ of garnishment is an order granted by a court to the creditor ordering an employer to garnish the wages of the defendant by X amount each paycheck. Such a writ is only granted when the creditor has filled out a suit in order to recover his debt and judgment was given in his favor. It is granted only after a judgment, as every American is guaranteed the right to due process. So, unless your creditor has sued you and won, there is no need to worry about your employer receiving such a writ.
In a writ of garnishment the amount to be garnished from a person’s paycheck is mentioned and it also provides instructions as to where the amount taken from the paycheck should be sent. If your employer receives a writ of garnishment, he has to act accordingly whether he is willing to do it or not he has to do whatever he has been asked to do as he has no choice .If he refuses the writ orders he could face serious legal trouble himself as he is disobeying the order of a court of law. Therefore, requesting with your employer to ignore the writ and advising him not to garnish your wages is not going to work.
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