A garnishee order involves a court-ordered garnishment of a debtor's wages or property in order to collect a debt. Unpaid wages, bank accounts and some personal property are the usual items garnished.Know More
In order to garnish a debtor, a creditor files for a court order seeking garnishment for repayment of an unpaid debt. The IRS uses this method of collecting unpaid taxes and penalties. The federal government, including the IRS, can garnish up to 25 percent of earned income. Employers withhold garnished funds from pay and send the garnished amount directly to the debtor. The amount of money and other types of properties that are garnished varies and are regulated by individual state laws and federal law.
The advantages of Chapter 7 bankruptcy over Chapter 13 bankruptcy include being allowed to retain property, not being required to pay back debt and obtaining a quicker resolution, says Nolo. Consumers usually prefer to file for Chapter 7 bankruptcy, but not everyone qualifies.Full Answer >
To collect debt, the Fair Debt Collection Practices Act stipulates that people may contact others via phone and mail or sue in civil court for debts, according to the Federal Trade Commission. Debts incurred to run a business are not covered by the Fair Debt Collection Practices Act.Full Answer >
Consumers can dispute a debt by contacting the collection company in writing disputing the validity of the debt and requesting copies of applications, bills and any other documentation to validate the debt, states Protecting Consumer Rights. Consumers should send dispute letters via certified mail, advises Bankrate.Full Answer >
Recovering money owed can involve making a reminder phone call to the debtor or obtaining a court judgment against the debtor; this judgment grants permission to place a lien against property or garnish wages. Other ways to recover money include engaging the services of a collection agency, using a mediator, offering a settlement agreement and sending a registered letter to remind the debtor of the money owed, according to ProfitGuide.com.Full Answer >